Financial Calculator
Solve any time value of money problem for N, I/Y, PV, PMT or FV, like a BA II Plus or HP 12C
TVM Solver
Solve for
PMT: Payment each period
−$483.32
Payments at the
Sign convention: money you receive is positive and money you pay out is negative. A loan you take is a positive PV with negative payments.
PMT: Payment each period
−$483.32
N 60 · I/Y 6.000% · PV $25,000.00 · PMT −$483.32 · FV $0.00
Rate per payment period
0.5000%
Total of all payments
−$28,999.20
PMT × N
Total interest
$3,999.20
|PV + PMT × N + FV|
Length
5 years
60 periods
Balance after each period
Shown as a positive amount: what's owed on a loan, or what's saved in an investment
Balance by Year
| Period | Year | Balance |
|---|---|---|
| 12 | 1 | $20,579.92 |
| 24 | 2 | $15,887.22 |
| 36 | 3 | $10,905.09 |
| 48 | 4 | $5,615.66 |
| 60 | 5 | $0.00 |
Time Value of Money
A dollar today is worth more than a dollar later because it can earn interest. Every loan, savings plan and annuity links five numbers: the number of periods (N), the interest rate (I/Y), the present value (PV), the payment (PMT) and the future value (FV). Know any four and the fifth follows, which is exactly what financial calculators do.
The Formulas
PV(1+i)^N + PMT(1+i·t)((1+i)^N − 1)/i + FV = 0
i = (1 + I/Y ÷ C/Y)^(C/Y ÷ P/Y) − 1
t = 1 for BGN, 0 for END
I/Y is solved numerically when it's the unknown, like on a financial calculator.
Avoiding Common Mistakes
- •Give PV and PMT opposite signs when one is money in and one is money out
- •Set P/Y to 12 for monthly payments; N then counts months
- •Use BGN for rent, leases and savings deposited at the start of each period
- •Leave FV at 0 for a loan that's fully paid off
- •If no rate is found, check that the cash flows change sign