⏳ Finance Calculator
The time value of money is the core idea of all finance: a dollar today is worth more than a dollar tomorrow, because today's dollar can earn a return. This calculator projects a present value forward, with optional payments each period.
Set the rate and periods to match each other — for example a monthly rate with a number of months, or an annual rate with a number of years.
How to use this calculator
Enter a present value, a payment per period, the interest rate per period and the number of periods to project the future value using the time value of money.
- Enter the Present value you are starting with.
- Type the Payment per period you will add each time.
- Enter the Interest rate per period and the Number of periods.
- Press Calculate, making sure the rate and the periods match, for example a monthly rate with a count of months.
Frequently asked questions
What is the time value of money?
It is the idea that money available now is worth more than the same sum later, because today's money can earn a return. This calculator projects a present value forward in time with optional regular payments to quantify that idea.
Which formula is used?
Future value equals the present value grown by compound interest plus the future value of the periodic payments as an annuity. The rate and the period count must describe the same interval.
Show me an example.
With a $5,000 present value, $200 added each period, a 0.5% rate per period and 60 periods, the projected future value is about $20,698. Of that, $17,000 came from your deposits and roughly $3,698 is interest earned.
What should I watch out for?
The most common mistake is mixing intervals, such as an annual rate with a monthly period count. Keep the rate and the number of periods in the same units or the projection will be wrong.