Present Value Formula: Present Value = Future Value * (1 + Interest Rate Per Period)^-Number of Periods Present Value Definition The Present Value Calculator will instantly calculate the present value of any future lump sum if you enter in the future value, the interest rate per period (also...
The simplest way is possibly to rely on a finance calculator, but here we will learn how to use the present value formula, which provides you with the advantage of getting a stronger understanding of what is actually going on with the calculation process. ...
The present value of your money is the discounted future value of it, which reflects its current value. A simpler explanation of present value is that if you are going to receive a set amount of money in the future, our present value calculator can help you understand the value of that a...
To calculate present value, enter the future value, interest rate, and time period into the present value calculator above. You can also do this without a calculator using a simple formula. Present Value FormulaThe present value formula is: ...
The present value calculator, formula, real world problems and practice problems would be very useful for grade school students (K-12 education) to understand the concept of an investment of money. This concept can be of significance in almost all fields of accounting and finance. For students,...
Formula – How Present Value is calculated Present Value = Future Value ÷ (1 + Rate of Return)Number of Periods Where: “Future Value” is a sum of money in the future. “Rate of return” is a decimal value rate of return per period (the calculator above uses a percentage). A retur...
On this page is apresent value calculator, sometimes abbreviated as aPV Calculator.Present valueis an estimate of thecurrentsum needed to equal some future target amount to account for various risks. Using thepresent value formula(or a tool like ours), you can model the value of future money...
Present value calculator is a tool that helps you estimate the current value of a stream of cash flows or a future payment if you know their rate of return. Present value, also called present discounted value, is one of the most important financial concepts and is used to price many things...
A number of online calculators are available, including thispresent value calculator. Determining the Discount Rate Thediscount rateis the investment rate of return that is applied to the present value calculation. In other words, the discount rate would be the forgone rate of return if an investo...
To calculate the present value of a stream of future cash flows you would repeat the formula for each cash flow and then total them. Fortunately, you can easily do this using software or an online calculator rather than by hand. Determining the Discount Rate ...