Skip to main content
/
time value of money calculatorfuture value calculatorpresent value calculatorcompound interest calculatorannuity calculatorrequired rate of returnTVM finance
//// Financial · Core Concepts

Time Value of Money Calculator

A dollar today is worth more than a dollar tomorrow. Solve for FV, PV, required rate, or required time. Annuity mode. Real vs nominal. Fisher equation inflation adjustment.

401(k) Limit 2024$23,000
Roth IRA Limit$7,000
S&P 500 Avg Return~10%/yr

Future Value

$38,697

In today's dollars (inflation-adjusted): $21,426

Rate Used

7.00%

Periods

20 yrs

Compound Factor

3.87×

Rule of 72

10.3 yrs

Inputs

Calculation Mode

$

Starting amount today

%

Expected annual return or discount rate

Time horizon in years

%

For real-return and purchasing power calcs

Use real (inflation-adjusted) returnSubtracts inflation via Fisher equation
Annuity mode (regular periodic payments)

Year-by-Year Schedule

YearNominal BalanceReal Balance (today's $)
Yr 1$10,700$10,388
Yr 2$11,449$10,792
Yr 3$12,250$11,211
Yr 4$13,108$11,646
Yr 5$14,026$12,099
Yr 6$15,007$12,568
Yr 7$16,058$13,056
Yr 8$17,182$13,564
Yr 9$18,385$14,090
Yr 10$19,672$14,637
Yr 11$21,049$15,206
Yr 12$22,522$15,796
Yr 13$24,098$16,410
Yr 14$25,785$17,047
Yr 15$27,590$17,709
Yr 16$29,522$18,397
Yr 17$31,588$19,111
Yr 18$33,799$19,854
Yr 19$36,165$20,625
Yr 20$38,697$21,426
1

Rate Used

Nominal rate as entered

= 7.00%

The Fisher equation converts nominal returns to real (inflation-adjusted) returns. Using real rates shows purchasing power growth, not just nominal dollar growth.

2

Compound Factor

(1 + r)^n

(1 + 7.00%)^20

= 3.87×

The compound factor is the multiplier that turns your present value into future value. Time and rate both increase this exponentially.

3

Future Value (Lump Sum)

PV × (1 + r)^n

$10,000 × 3.87×

= $38,697

Your $10,000 grows to $38,697 — a 286.97% total return over 20 years.

4

Inflation-Adjusted Future Value

FV / (1 + inflation)^n

$38,697 / (1 + 3.00%)^20

= $21,426

In today's purchasing power, $38,697 in 20 years is worth $21,426. Inflation silently erodes nominal gains.

#ShowYourWork

You might also like