How our present value calculator works?

Input	Description
Future Value/Amount Required	It is the future value for which you want to know current value
Expected Interest Rate	This is the percentage return per year at which you want to invest your amount for decided time duration
Time Duration	The duration in years for which you want to invest

Output	Description
Future Value/Amount Required	It is the future value for which you want to know current value
Interest Earned	This is the interest you will have by the end of investment years
Total Amount	It is equal to some future value it will have when investing at compound interest

What is Present Value Calculator?

The Present value calculator can be used to determine current value of a future some of amount. The Present value can be calculated using parameters like amount, interest rate, time period.

What is the Formula to calculate Interest on Present Value?

Here is the formula of Present Value:

PV = FV / (1 + r) ^ n

Where,

• PV – present value (the initial amount)
• FV – future value
• r – interest rate (per annum)
• n – total number of periods (years) the money is invested for.

For example, you required amount(future value) of Rs. 1,00,000 after 10 years at a 7% interest rate. So your present value after 10 years including rate of interset will be: PV = 100000 / (1 + 7/100) ^ 10 = Rs. 36,245