Time Value of Money Calculator — FV, PV & Compound Growth
Enter a starting amount, annual rate, time horizon and any regular contributions to see the future value — and how much comes from interest versus your own payments.
%
years
After 10 years at 7% annual rate
- 1
Growth factor (1+r)ⁿ
(1 + 0.07)^10 = 1.967151How much one unit of currency grows at the given rate over the full horizon. - 2
Lump-sum growth
5,000 × 1.967151 = 9,835.76 - 3
Annuity future value
500 × (1.967151 − 1) ÷ 0.07 = 6,908.22 - 4
Future Value (FV)
9,835.76 + 6,908.22 = 16,743.98
How does this calculator work?
FV = PV × (1+r)ⁿ + PMT × [(1+r)ⁿ−1] / r. With PV = 5000, PMT = 500/yr, r = 7%, n = 10 yr, FV ≈ 16,839. The gap between FV and total cash in is the compounded interest. Assumes annual compounding, end-of-period payments, no inflation or taxes.
Formula
How this is calculated
The time value of money (TVM) is the core principle that a dollar today is worth more than a dollar in the future, because money can earn interest. The standard FV formula has two components: the lump-sum growth term PV × (1 + r)ⁿ, where r is the annual rate and n is the number of years; and the annuity term PMT × [(1 + r)ⁿ − 1] / r, which accumulates the future value of equal end-of-period payments. When r = 0 the annuity term simplifies to PMT × n.
The growth curve shows the year-by-year balance, making it easy to see how compounding accelerates over time — the curve bends upward because interest is earned on previously credited interest. The "interest earned" figure is FV minus all cash you actually put in (PV plus every PMT); everything above that line is compounding.
This calculator assumes annual compounding and payments at the end of each period (ordinary annuity). For monthly compounding divide the annual rate by 12 and multiply periods by 12, and use a monthly PMT. The result does not account for inflation, taxes or fees — it is a mathematical projection, not a financial guarantee.
Frequently asked questions
The time value of money (TVM) is the principle that a sum of money today is worth more than the same sum in the future, because it can be invested to earn returns. TVM underpins all discounting, compounding, bond pricing and annuity calculations in finance.
FV (future value) is what a current sum grows to after n periods at rate r. PV (present value) is the current worth of a future sum, found by discounting: PV = FV ÷ (1 + r)ⁿ. FV asks "what will this grow to?"; PV asks "what is a future payment worth today?".
An "ordinary annuity" pays at the end of each period — the most common convention for loans, bonds and savings plans. If your plan contributes at the beginning (annuity-due), multiply the PMT term by (1 + r) to adjust. This increases FV slightly because each payment earns one extra period of interest.
Also known as
TG we-Calculate Editorial Team. (2026). Time Value of Money Calculator — FV, PV & Compound Growth [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/time-value-of-money-calculator
TG we-Calculate Editorial Team. "Time Value of Money Calculator — FV, PV & Compound Growth." TG we-Calculate. 2026. https://we-calculate.com/calculator/time-value-of-money-calculator.
TG we-Calculate Editorial Team, "Time Value of Money Calculator — FV, PV & Compound Growth," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/time-value-of-money-calculator
@misc{wecalculate_time_value_of_money_calculator, title = {Time Value of Money Calculator — FV, PV & Compound Growth}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/time-value-of-money-calculator}}, year = {2026}, note = {TG we-Calculate} }
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