Day to calculate the future value. This entry is required. Enter an amount between -$10,000,000 and $10,000,000. Amount of your initial deposit, or account balance, as of the present value date. This entry is required. Enter an amount between 0% and 20%. Present Value (PV) If you want to know the present value of an investment based on a series of. Following is the time value of money formula on how to calculate TVM. TVM = Principal. (1 + r)^n; r = interest rate n = number of compounding periods per year. How to Calculate Time Value of Money. To use the time value of money formula, we need a few given variables, the principal, interest rate, years to grow and the number of compounding.

This present value calculator can be used to calculate the present value of a certain amount of money in the future or periodical annuity payments.

Present Value of Future Money

Results

Present Value: $558.39

Total Interest: $441.61

Present Value of Periodical Deposits

Results

Present Value: $736.01

FV (Future Value)	$1,318.08
Total Principal	$1,000.00
Total Interest	$318.08

Schedule

start principal	start balance	interest	end balance	end principal
1	$0.00	$0.00	$0.00	$100.00	$100.00
2	$100.00	$100.00	$6.00	$206.00	$200.00
3	$200.00	$206.00	$12.36	$318.36	$300.00
4	$300.00	$318.36	$19.10	$437.46	$400.00
5	$400.00	$437.46	$26.25	$563.71	$500.00
6	$500.00	$563.71	$33.82	$697.53	$600.00
7	$600.00	$697.53	$41.85	$839.38	$700.00
8	$700.00	$839.38	$50.36	$989.75	$800.00
9	$800.00	$989.75	$59.38	$1,149.13	$900.00
10	$900.00	$1,149.13	$68.95	$1,318.08	$1,000.00

RelatedInvestment Calculator | Future Value Calculator

Value Money Over Time Calculator

Present Value

Present Value, or PV, is defined as the value in the present of a sum of money, in contrast to a different value it will have in the future due to it being invested and compound at a certain rate.

Net Present Value

A popular concept in finance is the idea of net present value, more commonly known as NPV. It is important to make the distinction between PV and NPV; while the former is usually associated with learning broad financial concepts and financial calculators, the latter generally has more practical uses in everyday life. NPV is a common metric used in financial analysis and accounting; examples include the calculation of capital expenditure or depreciation. The difference between the two is that while PV represents the present value of a sum of money or cash flow, NPV represents the net of all cash inflows and all cash outflows, similar to how the net income of a business after revenue and expenses, or how net benefit is found after evaluating the pros and cons to doing something. The inclusion of the word 'net' denotes the combination of positive and negative values for a figure.

The Time Value of Money

PV (along with FV, I/Y, N, and PMT) is an important element in the time value of money, which forms the backbone of finance. There can be no such things as mortgages, auto loans, or credit cards without PV.

Real-time Value Of Money Calculator

To learn more about or do calculations on future value instead, feel free to pop on over to our Future Value Calculator. For a brief, educational introduction to finance and the time value of money, please visit our Finance Calculator.

Real Time Value Money Calculator