See what an amount today will be worth later, or how much you need today to reach an amount in the future.
The time value of money is the idea that a real today is worth more than a real a year from now, because today it can be put to work. Two formulas express it. Future value moves money forward: FV = PV × (1 + i)^n. Present value moves it back: PV = FV ÷ (1 + i)^n. R$ 1,000 at 1% per month for 12 months becomes R$ 1,126.83, and R$ 1,126.83 twelve months out is worth exactly R$ 1,000 today at that same rate — the two questions are the same equation read in opposite directions.
These are compound formulas: the interest of each period joins the balance and starts earning interest itself, which is why the curve bends upward instead of climbing in a straight line. The exponent is the number of periods measured in the rate period, so the units have to agree. This calculator asks separately for the period of the rate and the unit of the time, then converts the duration into the rate period before doing anything: 5% per year over 6 months becomes an exponent of 0.5, and 1% per month over 2 years becomes an exponent of 24. Whenever a conversion happens the tool tells you which exponent it used. Note that it converts the duration, never the rate — turning 12% per year into a monthly rate takes the twelfth root, not a division by twelve.
The classic uses sit on both sides of the arrow. Forward: what the R$ 100,000 parked in an investment will be worth in ten years, or what a monthly rate compounds to over a decade. Backward: how much you need to set aside today to have R$ 100,000 for a down payment in eight years, and what a payment promised for next year is really worth right now — the same discounting logic used to price bonds and to weigh an instalment plan against the cash price. The model assumes a single amount and a constant rate: it does not handle monthly contributions, and it ignores taxes, fees and inflation, so to reason in real terms use a rate already net of inflation. This is an educational calculation, not a recommendation to invest in anything. Everything runs in JavaScript on your device and no value you type is sent anywhere.
FV = PV × (1 + i)^n and PV = FV ÷ (1 + i)^n, where i is the rate as a decimal (1% = 0.01) and n is the number of periods expressed in the same period as the rate. Interest earned = FV − PV.
Multiply the present amount by (1 + rate) raised to the number of periods, with the rate as a decimal. R$ 1,000 at 1% per month for 12 months is 1,000 × 1.01^12 = R$ 1,126.83.
It tells you what a future amount is worth today, which is how you choose between money now and money later. It answers "how much do I need to set aside today", and it is the basis for pricing bonds and for comparing an instalment plan with the cash price.
Yes. The calculator converts the duration into the rate period — 2 years at a monthly rate becomes 24 periods — and shows the exponent it used. It never converts the rate itself, since going from a yearly to a monthly compound rate takes the twelfth root, not a division by 12.
No. This tool moves a single amount forward or backward in time. A series of regular deposits needs an annuity formula, which is a different calculation.
No. All the math runs in JavaScript on your device, and nothing you type is uploaded or stored.
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