Discount Rate

The Present Value of future money

The value of a future sum can be calculated to the present worth or present value with the "discount rate"

P = F / (1 + i)ⁿ = (1)

where

F = future cash flow (positive for receipts, negative for disbursements)

PV = present value

i = discount rate

n = number of interest periods

The factor " 1 / (1 + i)ⁿ " is also known as the "single payment present worth factor".

Present Value - Online Calculator

F - single future cash flow

i - discount rate (%)

n - number of periods

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