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//// 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.

Where this fits

This tool lives inside Cash Flow and is most useful for households.

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.

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