# 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:

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.