Net Present Value Calculator Online

Present Value Calculator

Net Present Value Calculator

 The Net Present value, also called present discounted value. The Net present value is equal to Future value divided 1 numbers of value added to interest rate (%).

Formula us,

PV=FV/(1+r)

Let us consider,

  • PV = present value
  • FV = future value
  • r = interest rate

The present value for more than one period of time, you need to raise the (1+r) by the number of period.

n = number of periods.

 calculate the present value

If you read the previous paragraph you already know that to estimate present value you need to:

  1. Determine the future value. In our example let’s make it $ 200
  2. Determine a periodic rate of interest. Let’s say 7%
  3. Determine the number of periods. Let’s make it 2 years.
  4. Divide the future value by (1+rate of interest)^periods

In our example it will look like this:

PV=FV/(1+r)

200$/(1+0.07)2 = 200.14$

The answer is Present value = 200.14$

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