Finance Calculator
Solve for present value, future value, payment, or interest rate using time-value-of-money formulas.
How this is calculated
FV = PV×(1+r)ⁿ + PMT×[(1+r)ⁿ−1]/r, solved for the selected unknown variable.
Frequently Asked Questions About Finance Calculator
A finance calculator solves time-value-of-money problems by calculating present value, future value, periodic payments, or interest rates. Use it to determine how much money you need today or will have in the future.
What is time-value-of-money and why does it matter?
Time-value-of-money (TVM) is the principle that money today is worth more than the same amount in the future because it can earn returns. This calculator uses TVM to show how money grows with interest over time and helps compare values at different points in time.
What is the difference between Present Value (PV) and Future Value (FV)?
Present Value is what an amount of money is worth today, while Future Value is what it will be worth at a later date after earning interest. For example, $1,000 today has a future value of $1,100 in one year at 10% interest.
When would I use Present Value calculations?
Use Present Value when you want to know how much money you need to invest today to reach a future goal. For example, calculating how much to invest now to have $100,000 in 20 years, or determining the current worth of future payments.
How do I determine the right interest rate to use?
Use the annual interest rate available from your investment or savings account. If calculating investment returns, use historical averages or reasonable estimates. The rate should match the compounding frequency you've selected.
What does compounding frequency mean in this calculator?
Compounding frequency determines how often interest is calculated and added to your balance. Monthly compounding (12 times/year) results in slightly higher returns than annual compounding because interest is calculated more frequently, earning "interest on interest."
Can this calculator help me plan for retirement?
Yes, you can use it to determine how much you need to save monthly to reach a specific retirement goal (solving for payment), or to see how much you'll have with current savings and regular contributions. However, the retirement calculator is more specialized for this purpose.