Time value of money calculator's usage is simple. Just leave the one you want to calculate and fill the others. Then click the button of the one you want to calculate.

Time Value of Money

We can simply define time value of money as the difference in the money's value today and future.

Future Value (FV)

Future value (FV), as it can be understood from its name, is the asset's value at a specific time [1].

Present Value (PV)

The value of an asset at the present time is called as present value (PV) [2].

Let

Future Value,

Present Value,

Period

Payment

= Annual Rate

Interest Rate per Period,

, if payment made at the beginning of the period.

, otherwise.

We have

N can be derived similarly and I/Y can be computed using numerical methods.

**Example 1**

*Input*

Present Value = 10000

Interest Rate = 5%

Period = 3

Payment = 0

*Output*

Future Value = 11576.25

**Example 2**

*Input*

Present Value = 1000

Interest Rate = 6%

Period = 10

Payment = 100

Frequency = Annually

Mode = BEG

*Output*

Future Value = 3188.012

1. Time value of money (n.d.). Retrieved June 13, 2017, from https://en.wikipedia.org/wiki /Future_value

2. Future and Present Values (n.d). Retrieved June 13, 2017, from http://www.flinders.edu.au/ slc_files/Documents/Red%20Guides/ Future%20and%20Present%20Values.pdf