Calculator for I

Expertly Reviewed by: David Chen, CFA
Financial Analyst & Quantitative Strategist

Determine the missing component of your investment growth. Use this calculator for i to solve for the Interest Rate, Present Value, Future Value, or Time period based on the time value of money formula.

Calculator for i

Leave the field you want to calculate empty.

Please provide exactly 3 valid numbers to solve for the 4th.

Perform a calculation to see the detailed mathematical steps.

Calculator for i Formula

FV = PV × (1 + i)ⁿ

Formula Source: Investopedia – Compound Annual Growth Rate | Reference: Wikipedia TVM

Variables:

• i (Interest Rate): The annual percentage rate of return or discount rate.
• PV (Present Value): The current value of a future sum of money or stream of cash flows.
• FV (Future Value): The value of a current asset at a specified date in the future.
• n (Number of Periods): The total number of compounding periods (typically years).

What is Calculator for i?

The “Calculator for i” refers to a financial tool designed to solve for the interest rate (i) within the Time Value of Money (TVM) framework. It is fundamentally an Annualized Return Calculator that helps investors understand what rate of growth is required to turn an initial sum into a target future amount.

In broader terms, this calculator is a multi-purpose tool. Whether you are solving for the interest rate, the initial investment needed, or how long it will take to double your money, this module applies compound interest logic to provide precise financial projections.

How to Calculate calculator for i (Example)

Suppose you want to find the annual interest rate required to grow $5,000 into $10,000 over 8 years.

1. Identify variables: PV = 5,000, FV = 10,000, n = 8.
2. Use the derived formula for i: i = (FV / PV)^{(1 / n)} – 1.
3. Divide FV by PV: 10,000 / 5,000 = 2.0.
4. Raise to the power of 1/n: 2.0^(1/8) ≈ 1.0905.
5. Subtract 1: 1.0905 – 1 = 0.0905 or 9.05%.

Related Calculators

• Compound Interest Growth Calculator
• Present Value Discounting Tool
• Investment Doubling Time (Rule of 72)
• Savings Goal Projection Module

Frequently Asked Questions (FAQ)

What is the difference between nominal and effective i? The nominal rate is the stated annual rate, while the effective rate accounts for compounding within the year.

Why is my result showing an error? Ensure that your Future Value is greater than the Present Value if the interest rate is positive, and that Time (n) is not zero.

Can I use this for monthly rates? Yes, but if you enter monthly periods for ‘n’, the resulting ‘i’ will be the monthly interest rate.

What is a “good” interest rate? This depends on the inflation rate and your risk tolerance. Historically, the stock market averages 7-10% annually.