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Home/Finance Tools/Present Value (PV) Calculator

Present Value (PV) Calculator

Home › Finance Tools › Present Value (PV) Calculator

Present Value (PV) Calculator

Calculate the current worth of a future sum or stream of cash flows. Find how much capital is required today to meet future goals under custom discount rates.

Lump Sum Target (10 Years)
Retirement Annuity (20 Years)
College Savings (8 Years)
Calculate Present Value
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Present Value (PV Required Today)
—

Enter parameters on the left to calculate present value.

*Discounted mathematically to find today’s nominal cash worth.
Total Future Receipts/Value: —
Interest Discount Effect: —
Value Discount Ratio: —
Principal vs. Discount stack
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Discounting Schedule
Financial Formulas
YearStarting BalanceAnnual PayoutsInterest EarnedEnding Balance

Mathematical Derivation of Present Value

Present Value (PV) represents the current discounted value of future cash flows.

1. Present Value of Lump Sum (FV):
PVlump = FV / ( 1 + r / k )k × n
2. Ordinary Annuity Payouts (End of Period):
PVordinary = PMT × [ 1 – ( 1 + r / k )-k × n ] / ( r / k )
3. Annuity Due Payouts (Start of Period):
PVdue = PMT × [ 1 – ( 1 + r / k )-k × n ] / ( r / k ) × ( 1 + r / k )

Where:

  • FV = Future target value or lump sum.
  • PMT = Periodic receipt or payout stream.
  • r = Discount rate or annual interest rate (decimal).
  • k = Compounding frequency per year.
  • n = Duration in years.

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