Present Value Calculator

Determine the present value of future cash flows with our precise calculator.

Future Value

Number of Periods

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Interest Rate

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Periodic Deposit

$ per period

Number of Periods

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Interest Rate

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PMT of each compound period

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Result

Present Value: $5,583.95

Total Interest: $4,416.05

Result

Present Value: $2,340.51

Future Value: $4,191.49

Total Interest: $1,191.49

Total Principal: $3,000.00

Interest

Principal

Balance

0 yr

5 yr

10 yr

#	BEGINNING BALANCE	INTEREST	PRINCIPAL	ENDING BALANCE
1	$300.00	$18.00	$300.00	$318.00
2	$618.00	$37.08	$600.00	$655.08
3	$955.08	$57.30	$900.00	$1,012.38
4	$1,312.38	$78.74	$1,200.00	$1,391.13
5	$1,691.13	$101.47	$1,500.00	$1,792.60
6	$2,092.60	$125.56	$1,800.00	$2,218.15
7	$2,518.15	$151.09	$2,100.00	$2,669.24
8	$2,969.24	$178.15	$2,400.00	$3,147.39
9	$3,447.39	$206.84	$2,700.00	$3,654.24
10	$3,954.24	$237.25	$3,000.00	$4,191.49

What is an Online Present Value Calculator?

An Online Present Value (PV) Calculator is a financial tool used to calculate the current value of a future sum of money or a series of cash flows, discounted at a specified rate of return. It helps evaluate the worth of an investment, loan, or financial decision in today’s terms by accounting for the time value of money.

How to Use an Online Present Value Calculator?

Enter the Future Value:
- Input the amount of money you expect to receive in the future.
Provide the Discount Rate:
- Specify the rate of return or discount rate to reflect the time value of money.
Set the Time Period:
- Enter the number of periods (e.g., years or months) until the future value is realized.
Input Additional Cash Flows (Optional):
- If evaluating multiple cash flows, add amounts and the timing for each.
Calculate the Present Value:
- Click the calculate button to get the present value of the future amount(s).

Frequently Asked Questions-

What is the time value of money, and how does it relate to present value?
- The time value of money is the principle that money today is worth more than the same amount in the future due to its earning potential. Present value quantifies this concept by discounting future amounts to their current value.
What is a discount rate, and how do I choose it?
- The discount rate reflects the expected return or interest rate. It is often based on the risk level of the investment or the opportunity cost of using the funds.
Can this calculator handle multiple cash flows?
- Yes, most PV calculators allow you to input multiple future cash flows and calculate their combined present value.
How accurate is the present value calculation?
- The accuracy depends on the precision of inputs like the discount rate, time periods, and cash flow amounts.
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