Finance Calculator

N (# of periods, e.g., 10) I/Y (Interest % e.g., 6) PV (Present Value) PMT (Periodic Payment)

The Time Value of Money (TVM) principle states that money available today is worth more than the same amount in the future.

...

Read More

TVM involves key elements: Present Value (PV), Future Value (FV), interest rate (I/Y), number of periods (N), and optionally periodic payment (PMT).

For example, investing $100 at 10% interest yields $110 after one year. The compounding effect means interest earns interest over time, growing future value.

Understanding TVM helps evaluate investments, loans, and savings by translating future cash flows into present worth and vice versa.

Financial calculators greatly simplify TVM computations, supporting learning and real-world application in personal and professional finance.