Welcome to tvmschools.com, the resource for everything relating to the **time value of money TVM**.

We provide a wide variety of **tutorials, techniques, examples, formulas, tables, and calculators** all relating to time value of money calculations used in accounting and business finance.

### The Time Value of Money Concept

The time value of money is simply the idea that because of **interest**, the value of a cash flow received today (present value), is not equal to the value of the same cash flow received in the future (future value).

… money today is not the same as money tomorrow …

In order to be able to add cash flows from different time periods together, all the cash flows need to be brought together at the same time period. To do this we need to perform **discounting** or **compounding** operations.

The present value of a cash flow can be converted into a future value by compounding, and likewise, the future value of a cash flow can be converted to a present value by discounting.

### Tutorials

Quick and straightforward practical tutorials to help you understand the concepts of present value, future value and time value of money calculations. A collection of step-by-step lessons covering beginner, intermediate, and advanced topics.

### How-to

A selection of how-to guides which build on the tutorials and outline ways in which common time value of money calculations are used in practice.

### Examples

Short finance problems and solutions examples complement the tutorials and how-to’s and help you apply the time value of money principles and concepts in practice.

- ER2 Effective Interest Rate Examples
- ER1 Effective Interest Rate Examples
- Mortgage Loan Amount Example

### Formulas

Quick guides and cheat sheets for each time value of money formula explaining what the formula is, how its used, and what the equivalent Excel function is.

### Tables

Tables are a common feature used in time value of money calculations, they provide a quick method of performing calculations without the need for a financial calculator. We provide downloadable tables in PDF format for the most common functions, including present value, future value, and annuity calculations.

### Calculators

Our simple to use, free to download, Excel calculators are available for each time value of money function, including** PV, FV, IRR, NPV**, and many others.