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:

You would then get the Present Value of **759.9178**.

## 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**.