Finance calculator
Time Value of Money Calculator
Estimate future value, present value of payments, and growth effect from a starting amount, recurring payment, rate, and term.
FormulaFV = PV x (1 + r)^n + PMT x (((1 + r)^n - 1) / r)
Formula
Time value of money formula
Time value of money results are scenario estimates and do not predict investment performance or loan terms.
FV = PV x (1 + r)^n + PMT x (((1 + r)^n - 1) / r)
10,000 today plus 500 monthly at 7% for 10 years estimates the future value of both the starting balance and payments.
SourcesThis calculator includes source notes, assumptions, and exclusions so the result is easier to verify before use.
Sources and assumptions
Source notes
This calculator includes source notes, assumptions, and exclusions so the result is easier to verify before use.
- Effective year
- Current rules
- Last verified
- 2026-06-18
Time value of money results are scenario estimates and do not predict investment performance or loan terms.
Official and reference sources
Assumptions
- The annual rate is converted into equal monthly periods.
- Recurring payments are entered monthly and occur either at the beginning or end of each month.
- The result ignores taxes, fees, inflation, and investment volatility.
Not included
- Variable rates, irregular payments, missed payments, taxes, fees, inflation adjustment, and product-specific rules.
FAQ7 common questions for this calculator.
FAQs
What does time value of money mean?+
It means money available today can be worth more than the same nominal amount later because it can earn a return or avoid financing cost.
Can this handle monthly payments?+
Yes. Enter a monthly payment and choose whether it happens at the beginning or end of each month.
Is this the same as a future value calculator?+
It overlaps, but this page keeps present value, payment value, and future value together for broader TVM scenarios.
How does the Time Value of Money Calculator calculate the result?+
For the Time Value of Money Calculator, it uses the Time value of money formula: FV = PV x (1 + r)^n + PMT x (((1 + r)^n - 1) / r). 10,000 today plus 500 monthly at 7% for 10 years estimates the future value of both the starting balance and payments.
What information do I need to use the Time Value of Money Calculator?+
For the Time Value of Money Calculator, enter a starting amount, recurring payment, rate, and term. Keep the units consistent with the calculator fields and compare your setup with the worked example on the page.
How accurate is the Time Value of Money Calculator?+
Time Value of Money Calculator is accurate for the rates, amounts, dates, and rules entered. It uses the Time value of money formula shown on this page. Real products can differ because of fees, taxes, contract terms, or changing official thresholds.
What should I check before using the Time Value of Money Calculator result?+
For the Time Value of Money Calculator, check a starting amount, recurring payment, rate, and term, then compare the Time value of money formula and worked example with the contract or source you will rely on. Fees, tax year, currency, and payment timing can change the final decision.
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How to use the Time Value of Money Calculator
Estimate future value, present value of payments, and growth effect from a starting amount, recurring payment, rate, and term. The page also explains the time value of money formula and shows a practical example: 10,000 today plus 500 monthly at 7% for 10 years estimates the future value of both the starting balance and payments.
- 1
Enter your details
Enter a starting amount, recurring payment, rate, and term, then complete any other fields shown in the calculator.
- 2
Check the calculation
Review the result alongside the time value of money formula: FV = PV x (1 + r)^n + PMT x (((1 + r)^n - 1) / r).
- 3
Compare scenarios
Change one or more inputs to see how they affect the time Value of Money Calculator result before you use the estimate.