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What is the Time Value of Money (TVM)?

By Nicholas Rossolillo – Updated Jun 8, 2025 at 4:18AM

Key Points

  • Choosing a lump sum today utilizes TVM to grow wealth via investments sooner.
  • Investing combats inflation by yielding potential higher returns than high-interest debt.
  • Use TVM formulas to calculate future gains or ideal stock purchase prices today.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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