Time value of money calculator
Time value of money says a dollar today is worth more than a dollar later because it can earn a return. Future value is FV = PV × (1 + r)^n, and present value reverses it: PV = FV ÷ (1 + r)^n. Regular end-of-year payments add an annuity term.
Your inputs
Enter amount today or in the future, annual rate (%), years to see the result.
Inputs
- Amount
- The single sum. For future value it is invested today; for present value it is received in the future.
- Annual rate
- Return or discount rate per year.
- Years
- Number of annual periods.
- Regular payment
- Optional end-of-year payment or deposit.
Outputs
- Future value
- What today's amount and payments grow to.
- Present value
- What a future amount and payments are worth today.
- Growth factor
- (1 + r)^n.
How it is calculated
FV = PV × (1 + r)n + PMT × ((1 + r)n − 1) ÷ r
PV = FV ÷ (1 + r)n + PMT × (1 − (1 + r)−n) ÷ r
At a 0% rate the payment term is PMT × n.
Worked example (illustrative)
Illustrative only: $1,000 at 10% for 2 years grows to $1,000 × 1.21 = $1,210. $1,210 received in 2 years is worth $1,000 today at 10%.
Assumptions and limitations
- Payments are assumed at the end of each year.
- One constant annual rate is used.
- Taxes and inflation are not modeled unless reflected in your rate.
Questions and answers
What is the time value of money?
The idea that money available now is worth more than the same amount later, because it can be invested.
What is the difference between FV and PV?
Future value moves money forward in time; present value discounts it back to today.
What rate should I use?
A realistic return or your required rate for similar risk.
Can I enter monthly payments?
This calculator uses annual periods. Convert monthly figures to annual ones first.
Sources
Content reviewed October 9, 2026 by the SourceX Partnerships Team. Results are calculated in your browser; nothing you type is stored.