How it works

A useful distinction

Choose the unknown before entering cash flows

When solving for payment, the payment input is ignored rather than added to the plan. Set the solve selector first, then verify periods and signs; a negative signed payment can simply mean money you pay out.

Understanding cash-flow signs and timing

Time-value-of-money calculations connect present value, future value, periodic payments, and interest. In the signed cash-flow mode, money paid out and money received use opposite signs. An unexpected negative result may therefore describe cash-flow direction rather than a loss. Check whether payments occur at the beginning or end of each period before comparing the answer with another financial model.

Time value of money: formula and assumptions

FV = PV(1+i)^n + PMT[(1+i)^n−1]/i; beginning-of-period payments multiply the annuity factor by 1+i.

Amounts use a savings convention: starting value and contributions are positive inflows into the investment. The chosen unknown field is ignored.

Signed cash-flow TVM: formula and assumptions

PV(1+i)^N + PMT((1+i)^N−1)/i × timing + FV = 0.

Nominal interest is converted independently using the compounding and payment frequencies. Cash paid is negative and cash received positive. This convention differs from a positive-contribution savings form.

Worked example

Reference example currency: USD. These fixed examples do not change with your calculator preferences.

Using the Time value of money example:

Inputs

Solve for: Future value
Present value ($): 10000
Periodic contribution ($): 200
Annual effective return (%): 7
Time (years): 10
Periods per year: Monthly
Payment timing: End

Method

FV = PV(1+i)^n + PMT[(1+i)^n−1]/i; beginning-of-period payments multiply the annuity factor by 1+i.

Result

Example result

Future value: $53,881.86

These are illustrative inputs. Change the values to explore a different scenario.

Formula references

References explain the underlying methods; they do not imply endorsement or individual professional review of Finflo.

Common questions

Why are some cash-flow entries negative?

In signed TVM mode, payments made and money received have opposite signs. The savings mode instead uses positive contributions.

Does payment timing affect the answer?

Yes. A beginning-of-period payment has one additional period of growth or discounting compared with an end-of-period payment.

Prepared by Finflo. See our methodology and editorial policy. Read the relevant professional-advice limitations.

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