Present Value (PV) Calculation
Calculate the present value of a future amount.
This calculation provides an estimated result; current legislation and official calculations prevail. For binding transactions, consult your financial advisor or the relevant institution.
$
%
years
Result
$26.932,91
Present value: $26.932,91
Result in all units
Step-by-step solution
PV = FV ÷ (1 + r)^n
What Is Present Value?
Present value (PV) is the today's equivalent of an amount to be received in the future. It accounts for the time value of money; future money is worth less today.
How is it calculated?
How Is It Calculated?
PV = future value ÷ (1 + r)ⁿ
r: discount rate, n: number of periods.
- Enter the future amount, the rate and the duration.
Frequently Asked Questions
Why is future money worth less?
Because today's money can be invested to earn a return and inflation reduces purchasing power, the future amount is discounted.