Finance Calculator
Calculate time value of money with future value, present value, payments, and more.
Financial Calculations
About Finance Calculator
A finance calculator helps you understand the time value of money, one of the most important concepts in finance. It allows you to calculate various financial metrics based on the relationship between present value, future value, interest rates, payments, and time.
Key Formulas
Future Value: FV = PV × (1 + r)^n + PMT × [((1 + r)^n - 1) / r]
Present Value: PV = FV / (1 + r)^n
Payment: PMT = [FV - PV × (1 + r)^n] × r / [(1 + r)^n - 1]
Interest Rate: r = (FV / PV)^(1/n) - 1
Periods: n = ln(FV / PV) / ln(1 + r)
Calculation Types
- Future Value: What will my investment be worth in the future?
- Present Value: What is a future sum worth today?
- Payment: How much should I save/pay each period?
- Interest Rate: What return rate do I need?
- Periods: How long will it take to reach my goal?
Common Applications
- Savings: Calculate future value of regular deposits
- Investments: Determine required returns or time horizons
- Loans: Calculate payment amounts or payoff periods
- Retirement: Plan for future retirement needs
- Education: Calculate college savings requirements
Examples
- Future Value: $10,000 today at 5% for 10 years = $16,289
- Present Value: $20,000 in 5 years at 6% = $14,945 today
- Payment: To save $50,000 in 10 years at 7% = $345/month
Important Notes
- Interest rates should match the period frequency (annual, monthly, etc.)
- Results assume constant interest rates throughout
- Does not account for taxes, fees, or inflation
- Payments are typically made at the end of each period