Present Value Calculator

Calculate present value (PV) from a future value (FV) or from an annuity. Enter rate as annual percentage (e.g. 7 for 7%).

Mode Single Future Value (FV) Annuity (series of equal payments)

Future Value (FV)

Periodic Payment (for annuity)

Annual Interest Rate (%)

Number of Periods (n)

Compounding per year Annual Semi-annually Quarterly Monthly Daily Continuous compounding

Present Value:

Formula (single FV): PV = FV / (1 + r/m)^(n*m). For continuous: PV = FV * e^(-r*n). For annuity (payments at period end): PV = P * (1 - (1+r/m)^(-n*m)) / (r/m).

Tip: leave the fields you don't need blank (e.g. FV when using annuity payments).

 

Present Value (PV) Calculator

 What It Does:

 Calculates the current value of a future sum of money or cash flow, given a specific rate of return (discount rate).

 Key Terms: Future Value (FV): The anticipated amount of money in the future The interest rate used to discount future cash flows (e.g., 5% = 0.05) is called the discount rate (r). Time Period (n): The number of years or periods remaining before receiving the future amount.  Formula:

 P

 V

 =

 F

 V

 (

 1

 +

 r

 )

 n

 PV=

 (1+r)

 n

 FV

 ​

 Example:

 With a 7% annual discount rate and an expectation of $1,000 in five years, the present value is: P

 V

 =

 1000

 (

 1

 +

 0.07

 )

 5

 =

 $

 712.99

 PV=

 (1+0.07)

 5

 1000

 ​

 =$712.99

 When to Apply It: evaluating loans, investments, savings for retirement, or cash flows over time.  Calculator Inputs Needed:

 Future Worth (FV) Time Period (years) Discount Rate (percent) Output:

 Present value (PV) refers to the amount's future "value" today.