💰 Finance Calculator

The Time Value of Money is a financial concept that states money available today is worth more than the same amount in the future due to its potential earning capacity. This principle underlies all financial calculations involving interest rates and investment returns.

Enter at least 3 known values from the 5 parameters (PV, FV, I/Y, N, PMT), then the calculator will solve for the unknown values. You can click on any parameter label to set it as the target to solve for.

Present Value (PV) is the current worth of money, while Future Value (FV) is what that money will be worth at a specific time in the future, assuming it earns interest at a given rate.

More frequent compounding (daily vs. annually) results in higher returns due to earning interest on previously earned interest. The effect becomes more significant with higher interest rates and longer time periods.

Yes, you can calculate loan payments by entering the loan amount as PV (negative value), interest rate as I/Y, loan term as N, and solving for PMT. The result will show your periodic payment amount.

PMT stands for Periodic Payment - the regular cash flow amount that occurs at each period. This could be loan payments, annuity payments, or regular investment contributions.

Our calculator uses precise mathematical formulas and handles decimal calculations accurately. However, real-world results may vary due to factors like fees, taxes, and market conditions not accounted for in theoretical calculations.

Error messages typically indicate invalid input combinations or mathematical impossibilities. Check that your inputs are reasonable and that you've provided enough known values (at least 3 parameters) for the calculation to work.