Present Value (PV) Calculator

Please enter your values in the Present Value (PV) Calculator. Example is included below.

Future Value (FV): Interest Rate in % (r): Number of periods (n):

How to use the Present Value (PV) Calculator

Let’s review a simple example in order to see how to use the Present Value calculator. The goal is to derive the PV given the information below:

  • Future Value (FV) = 1000
  • Interest Rate in % (r) = 4
  • Number of periods (n) = 7

To start, enter the values in the calculator, and then click on the Calculate Present Value (PV) button:

Present Value (PV) Calculator

You would then get the Present Value of 759.9178.

Present Value Calculator

How to Manually Derive the Present Value

You may use the following formula to calculate the Present Value:

                                        FV   
Present Value (PV)  =  (1 + r)n            

Where:

  • FV = Future Value
  • r = Interest Rate
  • n = Number of Periods

For example, let’s say that you want to calculate the Present Value, given the following information:

  • FV = 1000
  • r = 4% (or 0.04)
  • n = 7

Based on the formula above, the Present Value is therefore:

                                        FV             1000    
Present Value (PV)  =  (1 + r)n = (1 + 0.04)7 = 759.9178        

You’ll then get the Present Value of 759.9178.