Our TVM (Time Value of Money) Calculator allows you to quickly see the effects time and discount rate have on your present value. Look to see the impact of modifying investments to see the out come of the future value and payments. This TVM calculator also allows you insight into retirement and saving opportunities. By using a financial calculator you can calculate the cash flows and determine the future value of an investment.
Using the Time Value of Money Calculator
- Start off by entering the present value. The present value is today’s value of the asset, investment, or portfolio.
- Next enter the future value. For example if you have a portfolio of $10,000 and you want to know when it’ll be worth $1,000,000 then you would enter $1,000,000. If this part is unknown you can leave it blank.
- Enter the annual interest rate. This is the expected market return over a period of time. The S&P 500 averages between 8%-12% a year.
- Next enter the number of years. You can calculate time by enter how many years from today.
Using the TVM Calculator
The TVM calculator can help you determine how much you need to save for retirement. For those of you looking to retire early the 72t calculator is another great calculator to determine how much you withdrawal. If you plan on saving for retirement this calculator can help tell you how much you should be setting aside each year to meet your retirement goals. Let’s say you’re 30 years old and you want to retire at the age of 60 with $1 million. If you expect to receive a market return of 12%, you would need to save $6,079 each year to meet your goal. The excel formula also works really well for those of you who are wanting to run a number of scenarios.