TVM Financial Calculator

Get TVM Financial Calculator App for Android - Play store link: Download

Highlights:

-Calculate PV, FV, PMT, NPER, RATE for single cash flow and annuities. Calculate NPV, IRR, MIRR for cash flows.

-Solve for any variable in time value of money calculation

-Solve simple and complex annuity problems. Complex annuities are those with payment period not equal to compounding period.

Screenshots:

Download TVM Calculator: Play Store

Loan EMI Calculation

Q. You plan to borrow 20,00,000 now and repay it in equal monthly installments over 15 years. If the annual interest rate is 10.5%, how much will your monthly payments be?

Open the Present Value of Annuity screen. Select solve for Payment.

Present Value: 2000000

Annual Interest Rate: 10.5
Payment Frequency: Monthly
Number of payments: 15

Compounding Interval: Monthly
End Balance: 0

Payment Mode: End

Ans: 22,107.98


If you don't want to download the app, you can use this online calculator for all kinds of loan calculations.

Fixed Deposit Maturity Value

Q. Find the maturity value of Rs. 400000 fixed deposit for 17 years with a nominal interest rate of 8.75% compounded annually.

Open the Single Cash Flow. Select solve for Future value.

Present Value: 400000

Annual Interest Rate: 8.75
Compounding Interval: Yearly

Ans: 16,64,782.52

If you don't want to download the app, use this online fd calculator.

Maturity Value of Recurring deposits: TVM Calculation Examples

Q. Find the maturity value of Rs. 10000 deposited every month for 10 years with a nominal interest rate of 8.75% compounded quarterly.

Open the Future Value of Annuity screen. Select solve for Future value.

Payment Amount: 10000

Payment Frequency: Monthly
Number of payments: 120 (10 * 12)
Annual Interest Rate: 8.75
Compounding Interval: Quarterly
Payment mode: Beginning

Ans: 19,15, 030.85

Likewise, you can use the calculator for to find the maturity value and interest earned for daily deposits/ quarterly deposits/ semi-annually and yearly deposits by changing the payment frequency.

If you don't want to install the app, you can use this online rd calculator.

Cost of leasing a Car: TVM Calculation Examples

Q. You are considering leasing a car. You notice an ad that says you can lease the car you want for $477.00 per month. The lease term is 60 months with the first payment due at inception of the lease. You must also make an additional down payment of $2,370. The ad also says that the residual value of the vehicle is $20,430. After much research, you have concluded that you could buy the car for a total "driveout" price of $33,800. What is the quoted annual interest rate you will pay with the lease?

Open the Present Value of Annuity screen. Select solve for Interest Rate.

Present Value: 33800 - 2370 (down payment) = 31430

Payment Amount: 477
Payment Frequency: Monthly
Number of payments: 60
Compounding Interval: Monthly
End Balance: 20430 (Residual value after 5 years/ 60 months)
Payment mode: Beginning

Ans: 13.47% per annum

Retirement Saving - TVM Calculation Examples

Q. You plan to retire 33 years from now. You expect that you will live 27 years after retiring. You want to have enough money upon reaching retirement age to withdraw $180,000 from the account at the beginning of each year you expect to live, and yet still have $2,500,000 left in the account at the time of your expected death (60 years from now). You plan to accumulate the retirement fund by making equal annual deposits at the end of each year for the next 33 years. You expect that you will be able to earn 12% per year on your deposits. However, you only expect to earn 6% per year on your investment after you retire since you will choose to place the money in less risky investments. What equal annual deposits must you make each year to reach your retirement goal?

I. Calculate PV of amount needed at the time of retirement

Open the Present Value of Annuity screen. Select solve for Present Value.

Annual Interest Rate: 6

Payment Amount: 180000
Payment Frequency: Yearly
Number of payments: 27
Compounding Interval: Yearly
End Balance: 2500000

Payment Mode: Beginning

Ans: PV = 3038989.79

II. Calculate Payment to achieve your retirement goal

Open the Future Value of Annuity screen. Select solve for Payment.

Future Value = 3038989.79
Annual Interest Rate: 12

Payment Frequency: Yearly
Number of payments: 33
Compounding Interval: Yearly

Payment Mode: End

Ans: 8874.79

Early Retirement - TVM Calculation Examples

Q. Steven White is considering taking early retirement, having saved $400,000. White desires to determine how many years the savings will last if $40,000 per year is withdrawn at the end of each year. White feels the savings can earn 10 percent per year.

Open the Present Value of Annuity screen. Select solve for Time Period.

Present Value: 400000

Annual Interest Rate: 10
Payment Amount: 40000
Payment Frequency: Yearly
Compounding Interval: Yearly
End Balance: 0
Payment mode: End

Ans: forever (Since 10% of 400000 is 40000 and Mr White only takes out the interest part of his investment every year)