Time Value of Money Calculator

Money today isn’t equal to money tomorrow. A dollar in your pocket now can earn interest, grow in value, or lose power due to inflation. This idea is called the Time Value of Money (TVM).

We built our Time Value of Money Calculator to make it simple for you. You’ll be able to find out how much your money will be worth in the future or what it’s worth today.

What Is the Time Value of Money?

The time value of money shows that money has earning potential over time. For example, if you invest $1,000 now, it may grow into $1,200 in a few years. But if you wait to invest, you miss that growth.

It helps answer questions like:

• How much will $10,000 be worth in 20 years?
• What’s the present value of $5,000 I’ll get in 10 years?
• How much do I need to save each month to reach my goal?

Time Value of Money Formula

The general formula is:

FV = PV × (1 + r)^t

Where:

• FV = Future Value
• PV = Present Value
• r = Interest rate per period
• t = Number of periods

If you want the present value, flip the formula:

PV = FV ÷ (1 + r)^t

For regular payments (like loans or savings), we use:

FV = PMT × [(1 + r)^t − 1] ÷ r

Here, PMT is your payment each period.

How to Use the Calculator

Our calculator is easy to use:

1. Enter the present value (PV) or current money.
2. Add the interest rate and the time period.
3. Choose if you’re finding future value, present value, or monthly payments.
4. Click calculate and see instant results.

It’s like having a financial guide in your pocket.

Real Example

Let’s say you invest $10,000 at an interest rate of 5% per year for 20 years.

FV = 10,000 × (1 + 0.05)^20

FV = 10,000 × 2.653

FV = $26,530

That’s how $10,000 grows over time.

Why Use It?

Our tool saves you from complex math. It works for:

• Investment planning
• Retirement savings
• Loan payments
• Education funds

Instead of long spreadsheets, you’ll get results in seconds.

Final Verdict

The time value of money proves one thing: time makes money grow. Our Time Value of Money Calculator helps you plan, save, and invest wisely. Whether you’re looking at the future value of your savings or the present value of a loan, this calculator has your back.

Don’t wait - time is money, literally.

FAQs

How do I calculate the time value of money?

Use the formula FV = PV × (1 + r)^t, or try our calculator.

How much will $10,000 be worth in 20 years?

At 5% interest, it becomes $26,530.

What is PV and how is it calculated?

PV is the present value. It’s FV ÷ (1 + r)^t.

Can I calculate monthly payments?

Yes, the calculator uses the annuity formula for that.