The BA II Plus is the gold standard for financial analysis. Use this online calculator to solve for any missing variable—Future Value (FV), Present Value (PV), Payment (PMT), Interest Rate (I/Y), or Number of Periods (N)—in ordinary annuity calculations.
BA 2 Plus Calculator Online: Time Value of Money (TVM)
Calculation steps will appear here after a successful calculation.
BA 2 Plus Calculator Online Formula
The core formula for Time Value of Money (TVM) links all five variables (assuming END mode and $i \ne 0$):
$$ 0 = PV(1+i)^n + PMT \left[ \frac{(1+i)^n – 1}{i} \right] + FV $$Where $i = \frac{I/Y}{100}$ (annual rate per period as a decimal) and $n = N$ (number of periods).
For Annuity Due (BGN mode), the payment section is multiplied by $(1+i)$:
$$ 0 = PV(1+i)^n + PMT \left[ \frac{(1+i)^n – 1}{i} \right] (1+i) + FV $$Variables Explanation
- N (Number of Periods): The total number of compounding or payment periods (e.g., months, quarters, years).
- I/Y (Interest Rate per Period, %): The periodic interest rate expressed as a percentage. This rate must match the time unit of N.
- PV (Present Value): The current value of a future sum of money or stream of cash flows. Typically entered as a cash outflow (negative) or received as a cash inflow (positive).
- PMT (Payment Amount): The equal, periodic deposit or withdrawal over the life of the investment.
- FV (Future Value): The value of an asset or cash at a specified date in the future, equivalent to a sum of money today.
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- Annual Percentage Yield (APY) Calculator
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What is the BA 2 Plus Calculator Online?
The BA II Plus is a widely used financial calculator, especially popular among students and professionals preparing for exams like the CFA or CPA. The online version mimics its core functionality, which centers around the Time Value of Money (TVM) concept.
TVM is a fundamental financial principle stating that money available now is worth more than the identical sum in the future due to its potential earning capacity. By solving for the five TVM variables—N, I/Y, PV, PMT, and FV—this calculator allows users to quickly evaluate investments, loans, bonds, and annuities.
How to Calculate Future Value (FV) – Example
Suppose you deposit $10,000 today (PV) and plan to save $500 at the end of each year (PMT) for the next 10 years (N), earning a 5% annual interest rate (I/Y). What will the future value (FV) be?
- Identify Inputs: N = 10; I/Y = 5; PV = -10,000 (outflow); PMT = -500 (outflow).
- Set Mode: Select END (ordinary annuity).
- Input Variables: Enter the values into the respective fields in the calculator.
- Solve for FV: Click ‘Calculate’. The result should be approximately $19,622.76.
Frequently Asked Questions (FAQ)
Is the BA II Plus Calculator allowed for the CFA exam?
Yes, the Texas Instruments BA II Plus and the Hewlett Packard 12C are the only two financial calculators permitted for use during the CFA Program exams.
When should I use BGN (Annuity Due) mode?
You should use BGN mode when cash flows (PMT) occur at the beginning of each period, such as rent payments, or contributions to a retirement account made at the start of the month.
Why are my PV and PMT negative?
The calculator uses a cash flow convention. Cash outflows (money you pay or invest) must be entered as negative, and cash inflows (money you receive) as positive. For a loan, PV (the loan amount received) is positive, and PMT (the payments you make) is negative.
Can this calculator solve for the interest rate (I/Y)?
Yes, by leaving the I/Y field blank and entering values for N, PV, PMT, and FV, the calculator uses an iterative numerical method to find the correct interest rate.