Time value of money

(TVM).

Time value of money is the concept that money held now (or receivable immediately) is worth more than the same amount of money to be received at some later time.

The time value of money is reflected in the charging of interest for the use of money, and also in discounted cash flow analysis.

See also

• Discounted cash flow
• Float
• Future value
• Interest
• Opportunity cost
• Present value
• Time value