Present Value Table
This present value table helps you determine the current worth of a future sum of money at various interest rates. Present value calculations are essential for investment planning, loan comparisons, retirement planning, and business valuations. By understanding how much a future dollar is worth today, you can make more informed financial decisions about savings, investments, and long-term financial goals. The table below shows how different interest rates and time periods affect the present value of your money.
| Year | 1% | 2% | 3% | 4% | 5% | 6% | 7% | 8% | 9% | 10% | 12% | 14% | 16% | 18% | 20% |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | $990.10 | $980.39 | $970.87 | $961.54 | $952.38 | $943.40 | $934.58 | $925.93 | $917.43 | $909.09 | $892.86 | $877.19 | $862.07 | $847.46 | $833.33 |
| 2 | $980.30 | $961.17 | $942.60 | $924.56 | $907.03 | $890.00 | $873.44 | $857.34 | $841.68 | $826.45 | $797.19 | $769.47 | $743.16 | $718.18 | $694.44 |
| 3 | $970.59 | $942.32 | $915.14 | $889.00 | $863.84 | $839.62 | $816.30 | $793.83 | $772.18 | $751.31 | $711.78 | $674.97 | $640.66 | $608.63 | $578.70 |
| 4 | $960.98 | $923.85 | $888.49 | $854.80 | $822.70 | $792.09 | $762.90 | $735.03 | $708.43 | $683.01 | $635.52 | $592.08 | $552.29 | $515.79 | $482.25 |
| 5 | $951.47 | $905.73 | $862.61 | $821.93 | $783.53 | $747.26 | $712.99 | $680.58 | $649.93 | $620.92 | $567.43 | $519.37 | $476.11 | $437.11 | $401.88 |
| 6 | $942.05 | $887.97 | $837.48 | $790.31 | $746.22 | $704.96 | $666.34 | $630.17 | $596.27 | $564.47 | $506.63 | $455.59 | $410.44 | $370.43 | $334.90 |
| 7 | $932.72 | $870.56 | $813.09 | $759.92 | $710.68 | $665.06 | $622.75 | $583.49 | $547.03 | $513.16 | $452.35 | $399.64 | $353.83 | $313.93 | $279.08 |
| 8 | $923.48 | $853.49 | $789.41 | $730.69 | $676.84 | $627.41 | $582.01 | $540.27 | $501.87 | $466.51 | $403.88 | $350.56 | $305.03 | $266.04 | $232.57 |
| 9 | $914.34 | $836.76 | $766.42 | $702.59 | $644.61 | $591.90 | $543.93 | $500.25 | $460.43 | $424.10 | $360.61 | $307.51 | $262.95 | $225.46 | $193.81 |
| 10 | $905.29 | $820.35 | $744.09 | $675.56 | $613.91 | $558.39 | $508.35 | $463.19 | $422.41 | $385.54 | $321.97 | $269.74 | $226.68 | $191.06 | $161.51 |
Highlighted column represents your selected interest rate of 5%.
Formula: PV = FV / (1 + r)^n
Where:
- PV = Present Value
- FV = Future Value ($1,000)
- r = interest rate (5%)
- n = number of years
Understanding Present Value
Present value is a fundamental concept in finance that represents how much a future sum of money is worth right now. It's based on the principle that money available today is worth more than the same amount in the future due to its potential earning capacity through investment or interest. This table displays present values at various interest rates and time periods, helping you visualize how time and interest rates impact the value of your money.
For example, if you need $10,000 in 5 years and can earn 5% interest on your investments, you would only need to invest about $7,835 today. This calculation becomes essential when planning for future expenses like education, retirement, or major purchases. Adjust the amount, interest rate, and time period in the table above to see how these variables affect your financial planning.
How to Use This Present Value Table
This interactive table shows you the present value of a future amount across different interest rates and time periods:
- Use the sliders to adjust the future amount, interest rate, and time horizon
- The table updates automatically to display present values for various interest rate scenarios
- Your selected interest rate is highlighted in blue for easy reference
- Toggle "Show all years" to view values for all years up to your selected time period
Financial professionals, investors, and students can use this table as a reference tool for understanding the time value of money concept.