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Present Value

PV=FV(1+r)t\mathit{PV} = \frac{\mathit{FV}}{(1 + r)^{t}}
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sig figs

Worked example: $10,000 in 8 yr at 5% → PV = 6768.39. Press Try an example to run it live, then adjust anything.

Enter your known values, leave one input blank, and solves for the missing one. Tap a variable’s symbol to see what it means, with a typical value. Change any unit and the answer follows.

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See also

Compound Interest (Periodic): Both use future value and discount rate per period.Continuous Compounding: Both use future value and discount rate per period.Simple Interest: Both use discount rate per period and number of periods.Exponential Decay: Both use number of periods.Exponential Growth: Both use number of periods.
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Present Value explained

PVFVrt

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 formula

PV=FV(1+r)t\mathit{PV} = \frac{\mathit{FV}}{(1 + r)^{t}}
Where
  • PV\mathit{PV}= Present value ($)
  • FV\mathit{FV}= Future value ($)
  • rr= Discount rate per period (decimal)
  • tt= Number of periods
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Time value of money

4 formulasSimple interest, periodic and continuous compounding, and discounting a future amount back to what it is worth today.

Revised 31 October 2026
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formula.expert. (2026, October 31). Present Value Formula & Calculator. https://formula.expert/solvers/present-value

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