Present Value Calculator

Present Value Calculator - calculate the present value based on a future value. Present value is the reverse of compound interest to find out how much to invest today in order to have a specific amount in the future. Below is a present value formula that shows how to calculate present value.

Present Value Formula

Here is the present value formula that shows how to calculate present value.

Present Value = Future Value/(1+r)^n
Where r is the interest rate and n is the number of years.

How to Calculate Present Value

To use the present value formula, we need the future value, interest rate and the number of periods.
For example, following is how to calculate present value of a future value of $5,000, 5% interest rate and 10 years of periods.
PV = 5000/(1+5/12/100)^10*12 = $3,069.57