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Finance Calc Kit
Investments

Time Value of Money Calculator

Calculate Present Value, Future Value, Interest Rate, or Number of Periods for lump sum investments.

Time value of money inputs

Solve for one variable while holding the others fixed. Compounding frequency adjusts the periodic rate and number of periods.

$
%

Future value

$1,215.51

$1,000.00 grows to $1,215.51 at 5.00%

Present value

$1,000.00

Future value

$1,215.51

Annual rate

5.0000%

Compounding periods

4.00

How the calculation works

Periodic rate, compounding periods, and the lump-sum TVM formula.

  1. Convert annual rate to periodic rate

    r=5.00%1=5.0000%r = \frac{5.00\%}{1} = 5.0000\%

    Divide the 5.00% annual rate by 1 compounding periods per year.

  2. Count compounding periods

    n=4.0000n = 4.0000

    Multiply 4 years by 1 compounding periods per year.

  3. Apply future value formula

    FV=PV×(1+r)n=1000.00×(1+0.050000)4.0000=1215.51FV = PV \times (1+r)^n = 1000.00 \times (1+0.050000)^{4.0000} = 1215.51

    Future value equals present value times (1 + r) raised to n.

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What is the time value of money?

A dollar today is worth more than a dollar tomorrow because money can earn interest or returns while you wait. The time value of money (TVM) framework converts cash flows across dates using a discount or growth rate.

Use this calculator to solve for present value, future value, interest rate, or number of periods. For a dedicated present value workflow, try the present value calculator. To project growth of a lump sum, see the future value calculator. For recurring deposits with compounding, use the compound interest calculator.

Lump-sum TVM formula

FV=PV×(1+r)nFV = PV \times (1 + r)^n

Where PVPV is present value, FVFV is future value, rr is the periodic interest rate, and nn is the number of compounding periods. With mm compounding periods per year, r=annual rate100×mr = \frac{\text{annual rate}}{100 \times m} and n=years×mn = \text{years} \times m (or months divided by 12, then multiplied by m).

Worked example

Invest $1,000 at 5% annual interest for 4 years with annual compounding. Periodic rate is 5%, compounding periods equal 4, and future value equals $1,000 × (1.05)4, or $1,215.51.

Compounding frequency matters

  • Annual compounding uses one period per year.
  • Monthly compounding divides the annual rate by 12 and uses 12 periods per year.
  • More frequent compounding increases future value for the same stated annual rate.

Frequently asked questions

Which variable should I solve for?
Solve for future value when you know today’s investment. Solve for present value when you know a future payout. Solve for rate or periods when you know both dollar amounts and need to infer growth or timing.
Does this calculator handle annuities?
This tool focuses on single lump sums. For payment streams, use the present value calculator in annuity mode or the compound interest calculator for recurring deposits.
Why is my future value slightly different from a spreadsheet?
Rounding on periodic rates or period counts can create small differences. Match compounding frequency, time units, and decimal precision to align results.
Can the interest rate be negative?
This calculator treats rates as non-negative growth assumptions. Negative rates require a different modeling approach.
Are results stored on your servers?
No. All math runs in your browser. Nothing is sent to the server.

Resources and references

The formulas and methods in this calculator were checked against these independent sources.