Mathematics & Statistics / Financial Mathematics
Present Value / Future Value Calculator
Initial lump sum amount
Leave blank if no regular payments
Time Value of Money Formulas
Future Value: FV = PV(1 + r)^n
Present Value: PV = FV / (1 + r)^n
FV of Annuity: PMT × [((1 + r)^n - 1) / r]
PV of Annuity: PMT × [(1 - (1 + r)^-n) / r]
Where: r = rate per period, n = total periods
Translate money across time horizons by converting present value to future value (and reverse) under chosen discount rates.
Formula
Future Value = Present Value * (1 + r)^n; Present Value = Future Value / (1 + r)^n
Worked Example
presentValue5000
annualRatePercent6
years10
Result: Future Value = $8,954At 6% annual growth over ten years, today's $5,000 compounds to roughly $8,954.
Frequently Asked Questions
When is present value most useful?
Present value is essential when comparing future cash flows against current alternatives or investment hurdles.
Should rate include inflation?
Use nominal rates for nominal cash-flow planning and real rates for inflation-adjusted purchasing-power analysis.