TVM Calculator
TVM Calculator is a tool to calculate the time value of money. Based on the interest rate and principal, you can calculate the TVM after a number of years.
| Month | Interest | Contribution | Balance |
| 1 | $41.67 | $100.00 | $10,141.67 |
| 2 | $42.26 | $100.00 | $10,283.92 |
| 3 | $42.85 | $100.00 | $10,426.77 |
| 4 | $43.44 | $100.00 | $10,570.22 |
| 5 | $44.04 | $100.00 | $10,714.26 |
| 6 | $44.64 | $100.00 | $10,858.90 |
| 7 | $45.25 | $100.00 | $11,004.15 |
| 8 | $45.85 | $100.00 | $11,150.00 |
| 9 | $46.46 | $100.00 | $11,296.46 |
| 10 | $47.07 | $100.00 | $11,443.53 |
| 11 | $47.68 | $100.00 | $11,591.21 |
| 12 | $48.30 | $100.00 | $11,739.50 |
| 13 | $48.91 | $100.00 | $11,888.42 |
| 14 | $49.54 | $100.00 | $12,037.95 |
| 15 | $50.16 | $100.00 | $12,188.11 |
| 16 | $50.78 | $100.00 | $12,338.90 |
| 17 | $51.41 | $100.00 | $12,490.31 |
| 18 | $52.04 | $100.00 | $12,642.35 |
| 19 | $52.68 | $100.00 | $12,795.03 |
| 20 | $53.31 | $100.00 | $12,948.34 |
| 21 | $53.95 | $100.00 | $13,102.29 |
| 22 | $54.59 | $100.00 | $13,256.88 |
| 23 | $55.24 | $100.00 | $13,412.12 |
| 24 | $55.88 | $100.00 | $13,568.01 |
| 25 | $56.53 | $100.00 | $13,724.54 |
| 26 | $57.19 | $100.00 | $13,881.72 |
| 27 | $57.84 | $100.00 | $14,039.56 |
| 28 | $58.50 | $100.00 | $14,198.06 |
| 29 | $59.16 | $100.00 | $14,357.22 |
| 30 | $59.82 | $100.00 | $14,517.04 |
| 31 | $60.49 | $100.00 | $14,677.53 |
| 32 | $61.16 | $100.00 | $14,838.69 |
| 33 | $61.83 | $100.00 | $15,000.52 |
| 34 | $62.50 | $100.00 | $15,163.02 |
| 35 | $63.18 | $100.00 | $15,326.20 |
| 36 | $63.86 | $100.00 | $15,490.06 |
| 37 | $64.54 | $100.00 | $15,654.60 |
| 38 | $65.23 | $100.00 | $15,819.83 |
| 39 | $65.92 | $100.00 | $15,985.74 |
| 40 | $66.61 | $100.00 | $16,152.35 |
| 41 | $67.30 | $100.00 | $16,319.65 |
| 42 | $68.00 | $100.00 | $16,487.65 |
| 43 | $68.70 | $100.00 | $16,656.35 |
| 44 | $69.40 | $100.00 | $16,825.75 |
| 45 | $70.11 | $100.00 | $16,995.86 |
| 46 | $70.82 | $100.00 | $17,166.67 |
| 47 | $71.53 | $100.00 | $17,338.20 |
| 48 | $72.24 | $100.00 | $17,510.44 |
| 49 | $72.96 | $100.00 | $17,683.40 |
| 50 | $73.68 | $100.00 | $17,857.08 |
| 51 | $74.40 | $100.00 | $18,031.49 |
| 52 | $75.13 | $100.00 | $18,206.62 |
| 53 | $75.86 | $100.00 | $18,382.48 |
| 54 | $76.59 | $100.00 | $18,559.07 |
| 55 | $77.33 | $100.00 | $18,736.40 |
| 56 | $78.07 | $100.00 | $18,914.47 |
| 57 | $78.81 | $100.00 | $19,093.28 |
| 58 | $79.56 | $100.00 | $19,272.84 |
| 59 | $80.30 | $100.00 | $19,453.14 |
| 60 | $81.05 | $100.00 | $19,634.20 |
What is time value of money?
Time value of money or TVM is a financial concept that states the money is worth more today than the same amount in the future due to inflation.
The buying power of the same $100 bill goes down in the future than today.
In addition, the same $100 bill can be invested and grow in value over time. There are also opportunity costs, risks and uncertainty of the future money,
having cash now reduce uncertainty.
How to calculate TVM?
To calculate the time value of money, we need to use the formula for future value.
Formula for Future Value (FV)
FV = PV × (1 + r)n
- FV: Future Value
- PV: Present Value
- r: Interest rate per period (decimal)
- n: Number of periods
Example
If you invest $1,000 at an annual interest rate of 5% for 3 years. How much will your money grow or worth in future value?
Using the TVM formula:
FV = 1000 × (1 + 0.05)3
FV = 1000 × (1.157625)
FV = $1,157.63
So, $1,000 today would grow to $1,157.63 in 3 years at 5% annual interest.
How to use the TVM calculator?
The calculation for time value of money gets more complicated when you start making regular contributions to the initial amount with different compounding period.
To make ones life easier, we buit the TVM calculator for users to calculate the future value of their investments and shows them a table that shows exactly how much their
money is worth at the end of each month.
The TVM calculator is calculated based on 6 variables, present amount, interest rate, years, compound period, additional contribution, and contribution frequency.
Present Amount - the initial investment or principal.
Interest Rate - the annual growth rate of an investment.
Years - the number of years an investment were to grow.
Compound Period - the compound period could be daily, weekly, monthly, quarterly, semi-annually, or annually.
Additional Contribution - the amount of money that one contributes regularly on top of the principal.
Contribution Frequency - the frequency of the contribution, either monthly or annually.
