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💰 Finance

Present & Future Value Calculator

Calculate the present value (PV) and future value (FV) of an investment based on interest rates and time.

⚡ Instant 🆓 Free 🔒 Private
pv fv future value present value finance tvm

The Time Value of Money (TVM)

The Time Value of Money is a fundamental financial principle stating that money available now is worth more than the same amount in the future. This is because money can be invested and grow over time.

Future Value (FV)

How much an investment will be worth in the future.

FV = PV × (1 + r)n

Present Value (PV)

What a future sum of money is worth today.

PV = FV / (1 + r)n

Key Variables

  • r: The interest rate per period.
  • n: The number of periods (usually years).

Using PV and FV allows you to compare the value of receiving money today versus receiving a larger amount in several years, accounting for inflation and potential investment gains.