Present Value

Present Value Calculator

This calculator calculates the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Use Cases

• Investment Valuation: Determining if an investment is worth its cost.
• Business: Evaluating projects (NPV).
• Insurance: Calculating settlements.

Formula

$$\text{PV} = \frac{\text{FV}}{(1 + r)^n}$$

Where:

• $PV$ is the present value
• $FV$ is the future value
• $r$ is the discount rate
• $n$ is the number of periods