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Present Value for Future Value Calculator

This Present Value for Future Value Calculator helps you determine the current worth of a future lump-sum amount, discounted at a given interest rate over time.

Future to Present Value Estimator

Input Fields
FV
$
Enter the future value amount
r
%
Enter the annual interest rate
n
years
Enter the number of years
If enabled, the result will update automatically when you change any value.

Present Value from Future Value Formula

Formula
$$PV = \frac{FV}{(1 + r)^n}$$

Where:

  • $$PV$$ = Present value (today’s value of future money)
  • $$FV$$ = Future value (amount to be received in the future)
  • $$r$$ = Interest rate per period (as decimal)
  • $$n$$ = Number of periods


Calculation Example

Suppose you want to know the present value of $10,000 to be received in 5 years at an annual interest rate of 5%.

Given:

  • $$FV=10,000$$
  • $$r=0.05$$
  • $$n=5$$

Calculation:

  1. $$PV = \frac{10,000}{(1 + 0.05)^5}$$
  2. $$PV = \frac{10,000}{(1.05)^5}$$
  3. $$PV = \frac{10,000}{1.27628}$$
  4. $$PV \approx 7,835.26$$

Thus, the present value is approximately $7,835.26.

The Present Value for Future Value Calculator allows you to estimate how much a future sum of money is worth today, accounting for the time value of money. It is essential in investment planning, business valuation, retirement forecasting, and comparing financial alternatives that involve receiving or paying money in the future.

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