Present Worth Calculator

What is Present Worth?

Present worth (PW) or present value (PV) is the current value of a future sum of money or stream of cash flows given a specified rate of return. It is based on the time value of money concept: a dollar today is worth more than a dollar tomorrow because it can be invested and earn interest.

Present Worth Formulas

The calculator supports three types of present worth calculations:

• Single Payment Present Value: PV = F / (1 + i)^n — converts a single future payment into today's dollars
• Annuity Present Value: PV = A × [(1+i)^n - 1] / [i(1+i)^n] — values a series of equal future payments
• Annuity Future Value: F = A × [(1+i)^n - 1] / i — calculates the accumulated value of regular deposits

How to Use the Calculator

Select the calculation mode from the dropdown, then enter the required values:

• Single Payment Present Value: Enter the future value (F), interest rate (i), and number of years (n) to find the present value.
• Annuity Present Value: Enter the periodic payment (A), interest rate, and number of years to find the total present value of the annuity.
• Annuity Future Value: Enter the periodic payment, interest rate, and number of years to find the accumulated future value.

Applications

Present worth analysis is essential for:

• Capital budgeting and investment analysis
• Bond pricing and valuation
• Real estate investment analysis
• Retirement planning and pension valuation
• Loan amortization and lease analysis

Also check: Present Value Calculator, Net Present Value Calculator, Future Value Calculator, Present Value Annuity Calculator, Annuity Payout Calculator, and ROI Calculator.