Present Value Calculator


Instructions: Compute the present value (\(PV\)) by indicating the future value (\(FV\)), the interest rate (\(r\)), number of years (\(n\)) the money will be invested, and the type of compounding (yearly, bi-yearly, quarterly, monthly, weekly, daily or continuously):

Future Value \((FV)\) =
Number of Years \((n)\) =
Interest Rate \((r)\) =
Compounding Period:

Present Value Calculator

More about the this present value calculator so you can better understand how to use this solver: The present value (\(PV\)) of a certain amount of money that will have certain future value (\(FV\)) after a number of years, depends on the number of years \(n\) when the money will be received, the interest rate \(r\), the type of compounding (yearly, bi-yearly, quarterly, monthly, weekly, daily or continuously). Let \(k\) be the number of times the money is compounded in a year. For example, for yearly compounding we have \(k = 1\), for bi-yearly compounding we have \(k = 2\), for quarterly compounding we have \(k = 4\), etc. The present value (\(PV\)) can be computed using the following formula:

\[ PV = \frac{FV}{\left( 1+\frac{r}{k}\right)^{ k \times n} } \]

For continuous compounding, we get that \(k \to \infty\), in which case we need to use the following formula instead.

\[ PV = \frac{FV}{e^{r \times n}} \]

If instead you know the present value and you want to compute the future value, use this calculator.




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