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Finance Calculator

Solve for any variable in the TVM equation: PV, FV, PMT, rate or periods.

Time Value of Money

Enter the four known values below (use a negative sign for cash outflows). The selected variable is solved automatically.

Result

Solved: PMT
-$618.76
Based on the inputs above

The TVM equation is PV·(1+r)ᴺ + PMT·((1+r)ᴺ−1)/r + FV = 0. Rate is the periodic rate — multiply by 12 to convert a monthly period rate into APR.

What is the Finance Calculator?

A finance calculator is a free online tool that solves the time value of money (TVM) equation for any one of five variables: present value (PV), future value (FV), periodic payment (PMT), interest rate, or number of periods. It's the same model used in finance courses and on HP and Texas Instruments financial calculators.

Finance Calculator formula

The TVM equation is PV × (1+r)^n + PMT × [((1+r)^n − 1) / r] + FV = 0, where r is the periodic rate and n is the number of periods. Solving for any one variable (when the other four are known) lets you compute loan payments, savings goals, mortgage payoffs, and break-even returns.

How to use the Finance calculator

  1. 1Choose which variable to solve for: PV, FV, PMT, rate, or number of periods.
  2. 2Enter the known values for the other four variables.
  3. 3Set the periodic interest rate and number of periods.
  4. 4Optionally toggle beginning-of-period vs end-of-period payments.
  5. 5Review the solved variable and the full TVM breakdown.

Example calculation

To save $50,000 over 10 years with a 7% annual return compounded monthly, you need to deposit about $289 per month. The $50,000 breaks down as roughly $34,685 in total contributions and $15,315 in investment growth.

Frequently asked questions

What is the time value of money?
The time value of money (TVM) is the principle that a dollar today is worth more than a dollar tomorrow because today's dollar can be invested to earn interest. TVM formulas let you compare cash flows that happen at different points in time.
What is the difference between present value and future value?
Present value (PV) is what a future cash flow is worth today, discounted at a given rate. Future value (FV) is what a present amount will grow to over time at a given rate. The two are linked by FV = PV × (1+r)^n.
How do you calculate PMT on a financial calculator?
Enter N (number of periods), I/Y (periodic interest rate as a percent, not decimal), and PV (present value as a negative number for an outflow), then compute PMT. On a TI BA II Plus, set P/Y = 1 for clarity.
What is the TVM formula used for in real life?
TVM is used for mortgage and auto loan payments, retirement projections, bond pricing, lease-vs-buy decisions, business project valuation (NPV/IRR), and any scenario where money moves across time periods at a known rate.

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