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Present Value Calculator
Use this free Present Value Calculator to determine the current worth of future cash flows. Simple, accurate, and easy to use for finance.
The present value calculator calculates the present-day value (PV) of an amount that you receive in the future, the formula for which is given below:
PV = C / (1+r)^n
Where,
- PV = Present Value
- C = Cash Flow at a period
- n = number of period
- r = rate of return
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INPUT VALUES
Cash Flow at a period (C)1000
Rate of return (r) %5
Number of periods (n)1
When to Use This Calculator
Use this calculator when you want to know how much a future sum of money is worth today, given a specific rate of return (discount rate). This is fundamental for evaluating investment opportunities.
Example Scenario
C (Future Cash Flow): $1,000
r (Rate): 10% (0.10)
n (Periods): 5 Years
PV = 1000 / (1 + 0.10)^5 = 1000 / 1.61051 = $620.92.
This means receiving $1,000 in 5 years is equivalent to having $620.92 today (if you could earn 10% interest).