CFA Level 1 Financial Calculator
CFA-style time-value-of-money, NPV, and IRR calculator. Solves for any of N, I/Y, PV, PMT, FV given the others — using CFA Institute conventions.
What is CFA Level 1 Financial Calculator?
The CFA Level 1 calculator implements the time-value-of-money math used throughout CFA Level 1 — solving for any single TVM variable given the other four. The conventions match what you'll see on the CFA curriculum and what the BA II Plus / HP 12C produce.
Sign convention: cash inflows are positive, outflows are negative. So a $1,000 deposit (an outflow from your perspective) is entered as PV = −1,000. The future value will then be positive.
Formula
Standard TVM equation: PV × (1+r)N + PMT × ((1+r)N − 1) / r + FV = 0 for ordinary annuities (end-of-period payments). For annuity due, multiply the PMT term by (1+r).
Solve for any one variable algebraically (PV, FV, PMT) or by Newton's method (N, I/Y).
Worked example
You deposit $1,000 today (PV = −1000), make 0 monthly payments, and want to know the FV after 10 years at 5% annual:
- Mode: Solve for FV
- N = 10, I/Y = 5, PV = −1000, PMT = 0
- FV = $1,628.89
How to use this calculator
- Pick which variable you want to solve for.
- Enter the four known values. Use the CFA sign convention: outflows negative, inflows positive.
- Pick payment timing — almost always "end of period" unless your problem specifies "annuity due".
Frequently asked questions
Is this allowed on the actual CFA exam?
No. CFA Institute only allows the HP 12C/12C Platinum and Texas Instruments BA II Plus/Professional. This online calculator is for practice only — use a physical CFA-approved calculator on test day.
Why are some inputs negative?
The CFA convention treats cash flows directionally. Money you give up (deposits, loan principal received from your perspective) is one sign; money you receive (loan payments to you, FV when withdrawing) is the opposite sign. Without consistent signs, the TVM formulas don't balance.
What's the difference between ordinary annuity and annuity due?
Ordinary annuity: payments at the END of each period (mortgages, car loans, most bonds). Annuity due: payments at the BEGINNING of each period (rent, insurance premiums, pre-paid annuities). The math difference: annuity due multiplies the PMT term by (1+r).
Why does I/Y use Newton's method?
Solving for the interest rate (I/Y) given the other four TVM variables doesn't have a closed-form algebraic solution. Numerical methods like Newton-Raphson iterate to find the rate that satisfies the TVM equation. CFA approved calculators do the same internally.
What about uneven cash flows?
For uneven cash flows (not a constant PMT), use the NPV/IRR functions. This calculator currently solves the level-payment TVM. NPV/IRR will be added in a future update; for now, use the BA II Plus CF worksheet.