Finance Calculator
Calculate the time value of money with precision
đ° Finance Calculator
đ Calculation Results
Summary
đ Schedule
| Period | Present Value | Payment | Interest | Future Value |
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đ Understanding Time Value of Money
Present Value (PV)
The current value of a future sum of money, discounted at a specific interest rate. It represents what money is worth today.
Future Value (FV)
The value of money at a specific date in the future, based on an assumed rate of growth. It shows what your investment will be worth.
Payment (PMT)
The regular payment amount in an annuity. This can be a payment you make (negative) or receive (positive) each period.
Interest Rate (I/Y)
The annual interest rate used for calculations. This represents the cost of money or the return on investment over time.
Number of Periods (N)
The total number of payment periods in the calculation. This could be years, months, or any other time period.
Compounding
The process where interest is earned on both the principal and previously earned interest. More frequent compounding increases returns.