What is a finance calculator?
This Finance Calculator solves time value of money (TVM) problems, the same five-key math used on business and financial calculators. Enter any four of N (number of periods), I/Y (interest rate per year), PV (present value), PMT (periodic payment) and FV (future value), and it solves for the fifth. Students, investors and borrowers use it for savings goals, loans, annuities and investment growth.
How to use it
- Choose the tab for the value you want to find: FV, PMT, I/Y, N or PV.
- Fill in the other four values. Enter money you pay out as a negative number and money you receive as positive.
- Open Settings to set payments per year, compounding per year, and whether payments are made at the end or the beginning of each period.
- Click Calculate to see the answer, a chart and a period-by-period schedule.
Key Elements of a Finance Calculator
Financial calculations often depend on several interconnected variables. Changing one input can affect the final result, which is why understanding the role of each variable is important when evaluating loans, investments, savings, or recurring payments.
- Present Value (PV): The value of money at the beginning of a financial period.
- Future Value (FV): The amount a present investment or payment may become in the future.
- Interest Rate (I/Y): The rate at which money grows or the cost charged for borrowing.
- Number of Periods (N): The total number of periods involved in the calculation.
- Periodic Payment (PMT): A recurring payment or cash flow made at regular intervals.
These elements are used in many common financial situations. For example, PMT can represent a monthly mortgage payment, recurring investment contribution, rental income, or regular business cash flow. The timing of payments also matters because payments made at the beginning of a period can produce different results from payments made at the end.
Time value of money formula
With payments at the end of each period:
FV = PV × (1 + i)^N + PMT × [((1 + i)^N − 1) ÷ i]
where i is the rate per period (I/Y ÷ periods per year). Each TVM problem rearranges this one equation to solve for a different unknown.
Example
You invest $10,000 today and add $200 a month for 10 years (N = 120) at 6% a year, compounded monthly (i = 0.5%):
- Growth of the $10,000: $10,000 × 1.005^120 ≈ $18,193.97
- Growth of the payments: $200 × [(1.005^120 − 1) ÷ 0.005] ≈ $32,775.87
- Future value: about $50,969.84
You put in $34,000 in total, so about $16,970 is interest.
Tips
- Keep signs consistent: if PV and PMT are money you pay in, FV will come out as money you get back (opposite sign).
- Match N to the payment frequency: 10 years of monthly payments is N = 120.
- Use “beginning of period” for things like rent or annuity-due payments.
Frequently Asked Questions
A Finance Calculator is an online tool used to solve financial calculations involving variables such as Present Value, Future Value, interest rate, number of periods, and periodic payments.
The time value of money is the financial concept that money available today can be more valuable than the same amount received later because current funds can potentially be invested or used to generate returns.
PV stands for Present Value, which represents the value of money at the beginning of a financial period. FV stands for Future Value, which represents the value of money at a later point after applying the relevant interest or return.
PMT represents a periodic payment or cash flow that occurs at regular intervals. It can be used to represent recurring mortgage payments, investment contributions, rental income, or other regular financial transactions.
A Finance Calculator can help evaluate financial variables associated with loans, including payment amounts, interest rates, loan periods, present values, and future values.
Disclaimer: This calculator gives estimates for general information only. It is not financial, tax or legal advice. Results depend on the numbers you enter and on simplified assumptions, so your actual figures may differ. Check important decisions with a qualified professional or the official source.
Related Calculators
For specific time value of money questions, these calculators go into more detail.