Free Finance Calculator. Solve for Future Value (FV), Present Value (PV), Periodic Payment (PMT), Interest Rate (I/Y), and Term (N). Features compound interest visualizers, inflation drag, and post-tax net returns.
| Present Value (PV) | $20,000 |
| Periodic Payment (PMT) | $-2,000 |
| Sum of All Payments | $-20,000 |
| Total Interest Earned / Paid | $30,544.64 |
| Future Value (FV) | $-9,455.36 |
| Real Purchasing Power (2.5% Inf) | $-7,386.52 |
| Period | PV | PMT | Interest | FV |
|---|---|---|---|---|
| Period 1 | $20,000 | $-2,000 | $1,200 | $19,200 |
| Period 2 | $19,200 | $-2,000 | $1,152 | $18,352 |
| Period 3 | $18,352 | $-2,000 | $1,101.12 | $17,453.12 |
| Period 4 | $17,453.12 | $-2,000 | $1,047.19 | $16,500.31 |
| Period 5 | $16,500.31 | $-2,000 | $990.02 | $15,490.33 |
| Period 6 | $15,490.33 | $-2,000 | $929.42 | $14,419.75 |
| Period 7 | $14,419.75 | $-2,000 | $865.18 | $13,284.93 |
| Period 8 | $13,284.93 | $-2,000 | $797.1 | $12,082.03 |
| Period 9 | $12,082.03 | $-2,000 | $724.92 | $10,806.95 |
| Period 10 | $10,806.95 | $-2,000 | $648.42 | $9,455.36 |
Complete 5-Variable TVM Decision Engine, Compound Interest Growth Visualizer & Inflation-Adjusted Wealth Modeling.
The Time Value of Money (TVM) is the foundational principle of financial engineering. It dictates that a dollar available today is worth more than a dollar promised in the future because today's dollar can be invested to earn interest or investment returns over time.
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. Unlike simple interest, compound interest accelerates wealth exponentially over long durations.
FV = PV \cdot (1 + r \cdot t)
Interest is earned only on the initial principal amount.
FV = PV \cdot \left(1 + \frac{r}{m}\right)^{m \cdot t}
Interest is earned on principal plus accumulated interest.
The timing of periodic contributions changes the final balance.
Gross nominal returns do not reflect true purchasing power. To evaluate real wealth accumulation, investors must adjust for Inflation Drag and Capital Gains Tax Drag.
Mastering TVM mathematics allows investors, students, and loan underwriters to compute precise future values, periodic payments, and required interest rates across any financial horizon.