5-Key Financial Calculator
Professional time value of money calculations – just like the BA II Plus and HP 12CP calculators
Calculate Future Value (FV)
Calculate Payment (PMT)
Calculate Interest Rate (I/Y)
Calculate Number of Periods (N)
Calculate Present Value (PV)
Calculation Results
Understanding Time Value of Money
The Time Value of Money (TVM) is a fundamental financial concept that states money available now is worth more than the same amount in the future due to its potential earning capacity. This core principle forms the foundation for finance and investing.
Key TVM Concepts:
- Present Value (PV) – Current value of a future sum of money
- Future Value (FV) – Value of a current asset at a future date
- Interest Rate (I/Y) – Percentage at which money grows over time
- Number of Periods (N) – Time over which the money grows
- Payment (PMT) – Regular contributions or withdrawals
Why It Matters:
Understanding TVM helps with investment decisions, loan calculations, retirement planning, and comparing financial options. It demonstrates why starting investments early is so powerful – thanks to compounding interest.
“Money makes money. And the money that money makes, makes more money.”
– Benjamin Franklin
Future Value (FV)
Calculates how much an investment made today will grow to at a future date, considering compound interest.
Payment (PMT)
Determines the regular payment amount needed to reach a financial goal or pay off a loan.
Interest Rate (I/Y)
Calculates the required rate of return to achieve an investment goal with given parameters.
Periods (N)
Determines how long it will take to reach a financial goal with regular investments.
Present Value (PV)
Calculates the current worth of a future sum of money, considering a specific rate of return.
This calculator provides estimates only. Actual financial results may vary based on market conditions, fees, and other factors. Consider consulting a financial advisor before making important financial decisions.