What is the time value of money?
The time value of money is the core financial principle that a dollar today is worth more than a dollar in the future, because money available now can be invested to earn a return. This calculator lets you move a dollar amount forward or backward in time at a given interest rate.
How this calculator works
To find the future value of an amount, it uses FV = PV × (1 + r)n. To find the present value of a future amount, it rearranges the same relationship: PV = FV ÷ (1 + r)n, where r is the annual interest (or discount) rate and n is the number of years.
- Use “Future Value” to see what an amount today will grow to.
- Use “Present Value” to see what a future amount is worth in today’s dollars.
This calculator assumes annual compounding and a constant rate for simplicity, and is intended for general educational and planning purposes only.
Last reviewed August 2026