Present Value Calculator
Calculate Present Value
Understanding Present Value
What is Present Value?
Present Value (PV) represents the current worth of a future sum of money, given a specified rate of return. It's a fundamental concept in finance that helps determine how much money you need to invest today to reach a specific financial goal in the future.
The Formula
PV = FV / (1 + r)^n
Where:
PV = Present Value
FV = Future Value
r = Interest Rate (as decimal)
n = Number of Years