Finance Calculator
This finance calculator can be used to calculate the future value (FV), periodic payment (PMT), interest rate (I/Y), number of compounding periods (N), and present value (PV). Each of the following tabs represents the parameters to be calculated.
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About the Finance Calculator
The Finance Calculator can be used to solve various financial problems involving the time value of money. It can calculate present value (PV), future value (FV), periodic payment (PMT), interest rate (I/Y), and number of compounding periods (N).
Time Value of Money
The time value of money is the concept that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity. This core principle of finance holds that, provided money can earn interest, any amount of money is worth more the sooner it is received.
Key Financial Formulas
The calculator uses the following formulas to solve financial problems:
- Future Value (FV): FV = PV × (1 + r)^n + PMT × [(1 + r)^n - 1] / r
- Present Value (PV): PV = FV / (1 + r)^n + PMT × [1 - 1 / (1 + r)^n] / r
- Payment (PMT): PMT = [PV × r × (1 + r)^n] / [(1 + r)^n - 1]
- Interest Rate (r): Solved numerically using iterative methods
- Number of Periods (n): Solved numerically using iterative methods
Common Uses
This calculator can be used for various financial calculations including:
- Loan amortization and payment calculations
- Investment growth projections
- Retirement planning
- Savings goal planning
- Comparing different investment or loan options