Finance Calculator
Calculate Future Value and Present Value of money
About this Tool
The finance calculator performs fundamental time value of money calculations, including future value and present value computations. These calculations are core to financial planning, investment analysis, and understanding how money grows over time. Future value shows what an investment today will be worth in the future given an interest rate and time period. Present value calculates what a future amount is worth in today's dollars. Both calculations are essential for comparing investment options, retirement planning, and making informed financial decisions.
Common Use Cases
Investment Planning
Calculate how much your current investments will grow over time, or determine how much you need to invest today to reach a future financial goal.
Retirement Calculations
Estimate future value of retirement savings or determine present value of required retirement income to plan adequate savings.
Loan Analysis
Understand the present value of loan payments or future value of payment streams to compare financing options and evaluate deals.
Business Valuation
Calculate present value of future cash flows for business investments, project evaluations, or capital budgeting decisions.
Pro Tips
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Time Value of Money
Money available today is worth more than the same amount in the future due to its potential earning capacity. This principle underpins all financial calculations.
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Compounding Effects
Future value calculations assume interest compounds over time. More frequent compounding periods (quarterly vs annually) result in higher future values.
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Realistic Rate Assumptions
Use realistic interest rates based on historical averages. Stock markets average 7-10% annually after inflation, while bonds are typically lower at 3-5%.
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Inflation Consideration
Real returns account for inflation. If investments earn 7% but inflation is 3%, your real return is approximately 4%. Consider inflation when planning long-term.