Why should I calculate present value?

Present value helps compare financial options by accounting for the time value of money.

What formula is used for present value?

The calculator uses PV = FV / (1 + r)^t, where r is interest rate and t is time in years.

Is my information saved?

No data is saved or sent. Everything is calculated directly in your browser.

Present Value Calculator (PV)

Q: What is present value?

Present value (PV) is the current worth of a future sum of money, calculated using interest rate and time.

Calculate the present value of a future amount using the time value of money formula.

Future Value (FV)

Annual Interest Rate (%)

Time (Years)

How This Present Value Calculator Works

Present value (PV) tells you how much a future amount is worth today. It is based on the idea that money available now is more valuable than money received later due to interest, inflation, or investment opportunities. This concept is known as the time value of money.

The calculator uses the standard formula: PV = FV / (1 + r)^t. By entering a future value, interest rate, and time period, you can find how much the amount is worth in today's terms. This is useful for comparing investments, planning finances, and making smarter money decisions.

All calculations happen instantly in your browser. No data is stored or sent anywhere, ensuring privacy and fast results.

Frequently Asked Questions

What is present value?

Present value tells you how much a future amount is worth in today's terms, considering interest and time.

Why is present value important?

It helps compare investments, loans, and financial goals by accounting for the time value of money.

What formula does this tool use?

It uses the standard PV formula: PV = FV / (1 + r)^t, where r is the interest rate and t is the time in years.

Is my data saved?

No. All calculations are done in your browser only.