Present Value
Enter your known values, leave one input blank, and solves for the missing one. Try different units for next level excitement!
Learning zone
Money later is worth less than money now, because money now could be invested. Present value runs compound growth in reverse: $10,000 arriving in 8 years, discounted at 5% per year, is worth PV = 10000 / 1.05⁸ ≈ $6,768.39 today. Enter the rate as a decimal (5% → 0.05).
This one discount is the atom of finance — bond prices, mortgage balances, and a company's valuation are all sums of future cash flows each pulled back to today. Solving for r asks "what return does this deal imply?", and solving for t asks how long a target takes at a given rate.
Present Value
Where
- = Present value
- = Future value
- = Discount rate per period (decimal)
- = Number of periods
Missing one of these? Work it out first, then come back
- Present value — Slope Between Two Points, Slope-Intercept Form of a Line
- Future value — Slope Between Two Points, Slope-Intercept Form of a Line
- Discount rate per period (decimal) — Exponential Growth, Exponential Decay
- Number of periods — Exponential Growth, Exponential Decay