Time Value of Money (TVM) Calculator
Select a value to calculate, then enter the other four. Payments (PMT) for outflows should be negative.
This versatile tool functions as a 5-key Time Value of Money (TVM) calculator, similar to financial calculators like the HP 12C or TI BA II Plus. It allows you to solve for any one of the five key variables in financial analysis by providing the other four.
Understanding the TVM Variables
- N (Number of Periods): The total number of payments or compounding periods (e.g., months or years).
- I/Y (Interest Rate per Year): The annual interest rate. The calculator automatically converts this to a periodic rate based on the compounding frequency.
- PV (Present Value): The current value of a sum of money. For a loan, this is the principal amount. For an investment, it's the initial amount.
- PMT (Periodic Payment): The amount of each regular payment. Cash outflows, such as loan payments or investment contributions, are typically entered as negative numbers.
- FV (Future Value): The value of an asset at a specified date in the future.
How to Use the Calculator
- Select the Tab: Click on the tab for the variable you wish to calculate (N, I/Y, PV, PMT, or FV).
- Enter the Knowns: Input the four known values into their respective fields.
- View the Result: The calculator will automatically display the calculated value for your chosen variable.
This calculator is an essential tool for students, financial professionals, and anyone looking to analyze loans, mortgages, investments, or retirement savings plans.