Basic Financial Calculator
This works just like a pocket financial calculator. In addition to arithmetic, it can also calculate present value, future value, payments or number of periods.
How the basic financial calculator works
It applies the core time-value-of-money formula: a starting amount grows by compound interest while regular payments are added and compounded too. The result is the future value, split into what you contributed and what interest earned.
Worked example: with present value (starting amount) of $1,000, payment each period of $100 and rate per period of 0.50%, the basic financial calculator shows future value of $18,207.
- Total contributed
- $13,000
- Interest earned
- $5,207
- Future value
- $18,207
- Growth multiple
- 1.40×
The formula
Future value = PV × (1 + r)ⁿ + PMT × ((1 + r)ⁿ − 1) ÷ r, where r is the rate per period and n the number of periods.
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.
Questions about the basic financial calculator
What is a basic financial calculator for?
It answers the fundamental money question — what an amount plus regular payments grows to over time at a given rate — which underlies loans, savings and investments alike.
How do I use a monthly rate?
Divide the annual rate by 12 and set the number of periods to the number of months. The calculator then compounds monthly.
What is the difference between PV and PMT?
PV (present value) is your one-time starting amount; PMT is the recurring payment added each period. The calculator compounds both to the future value.
Is the Basic Financial Calculator free to use?
Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.