Calculator Pv

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.pv-calc-container { font-family: -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, Helvetica, Arial, sans-serif; max-width: 800px; margin: 20px auto; padding: 25px; border: 1px solid #e1e1e1; border-radius: 12px; background-color: #ffffff; box-shadow: 0 4px 15px rgba(0,0,0,0.05); } .pv-calc-header { text-align: center; margin-bottom: 30px; } .pv-calc-header h2 { color: #2c3e50; margin-bottom: 10px; } .pv-calc-grid { display: grid; grid-template-columns: 1fr 1fr; gap: 20px; margin-bottom: 25px; } @media (max-width: 600px) { .pv-calc-grid { grid-template-columns: 1fr; } } .pv-input-group { display: flex; flex-direction: column; } .pv-input-group label { font-weight: 600; margin-bottom: 8px; color: #34495e; font-size: 14px; } .pv-input-wrapper { position: relative; display: flex; align-items: center; } .pv-input-wrapper input, .pv-input-wrapper select { width: 100%; padding: 12px; border: 2px solid #edeff2; border-radius: 8px; font-size: 16px; transition: border-color 0.3s; } .pv-input-wrapper input:focus { outline: none; border-color: #3498db; } .pv-input-prefix { position: absolute; left: 12px; color: #7f8c8d; } .pv-input-suffix { position: absolute; right: 12px; color: #7f8c8d; } .has-prefix input { padding-left: 30px; } .has-suffix input { padding-right: 35px; } .pv-calc-btn { grid-column: span 2; background-color: #2ecc71; color: white; border: none; padding: 15px; border-radius: 8px; font-size: 18px; font-weight: bold; cursor: pointer; transition: background 0.3s; } @media (max-width: 600px) { .pv-calc-btn { grid-column: span 1; } } .pv-calc-btn:hover { background-color: #27ae60; } .pv-result-box { margin-top: 25px; padding: 20px; background-color: #f8f9fa; border-radius: 8px; text-align: center; border: 2px dashed #dcdde1; } .pv-result-box h3 { margin: 0; color: #7f8c8d; font-size: 16px; text-transform: uppercase; letter-spacing: 1px; } #pvValueDisplay { display: block; font-size: 36px; font-weight: 800; color: #2c3e50; margin-top: 10px; } .pv-article { margin-top: 40px; line-height: 1.6; color: #333; } .pv-article h2 { color: #2c3e50; margin-top: 30px; border-bottom: 2px solid #eee; padding-bottom: 10px; } .pv-article h3 { color: #34495e; margin-top: 20px; } .pv-formula-card { background: #2c3e50; color: #ecf0f1; padding: 20px; border-radius: 8px; text-align: center; margin: 20px 0; font-family: "Courier New", Courier, monospace; font-size: 1.2em; }

Present Value (PV) Calculator

Determine the current value of a future sum of money based on a specific discount rate.

$
%
Annually (1/yr) Semiannually (2/yr) Quarterly (4/yr) Monthly (12/yr) Daily (365/yr)

Current Present Value

$0.00

Understanding Present Value (PV)

Present Value (PV) is a fundamental financial concept that states an amount of money today is worth more than the same amount in the future. This is known as the Time Value of Money. Because money can earn interest or be invested, receiving $1,000 today is preferable to receiving $1,000 five years from now.

The Present Value Calculator helps investors, business owners, and students determine how much a future cash flow is worth in today's dollars, given a specific discount rate (or rate of return).

PV = FV / (1 + r/n)^(nt)

Key Components of the Formula:

  • PV (Present Value): The current worth of your future money.
  • FV (Future Value): The amount of money you expect to receive or pay in the future.
  • r (Discount Rate): The annual rate of interest or return.
  • n (Compounding): How many times the interest is applied per year.
  • t (Time): The total number of years.

Realistic Examples

Example 1: Long-term Savings

Imagine you want to have $50,000 in 10 years to pay for a child's education. If you can earn an annual return of 7%, how much do you need to invest today? Using the PV calculator, you would find that you need to invest approximately $25,417.47 today.

Example 2: Business Investment

A business project promises a payout of $100,000 in 3 years. If the company's cost of capital is 10%, the present value of that payout is $75,131.48. If the project costs more than this today, it may not be a wise investment.

Why Use a PV Calculator?

Calculating Present Value is essential for:

  • Capital Budgeting: Deciding which projects or investments will yield the best return.
  • Annuity Valuation: Determining the lump-sum value of future periodic payments.
  • Comparing Financial Offers: Deciding between a lump sum today or a larger payment in the future.
  • Retirement Planning: Calculating how much current savings are worth relative to future inflation.
function calculatePV() { var fv = parseFloat(document.getElementById('fvInput').value); var annualRate = parseFloat(document.getElementById('rateInput').value); var years = parseFloat(document.getElementById('periodsInput').value); var compounding = parseFloat(document.getElementById('compoundingInput').value); var display = document.getElementById('pvValueDisplay'); // Validation if (isNaN(fv) || isNaN(annualRate) || isNaN(years)) { display.innerHTML = "Please enter valid numbers"; display.style.fontSize = "18px"; display.style.color = "#e74c3c"; return; } if (fv < 0 || annualRate < -99 || years < 0) { display.innerHTML = "Invalid Input Values"; display.style.fontSize = "18px"; display.style.color = "#e74c3c"; return; } // Convert annual percentage to decimal var r = annualRate / 100; // PV Formula: PV = FV / (1 + r/n)^(n*t) var base = 1 + (r / compounding); var exponent = compounding * years; var pv = fv / Math.pow(base, exponent); // Reset styles and display result display.style.fontSize = "36px"; display.style.color = "#2c3e50"; if (isFinite(pv)) { display.innerHTML = "$" + pv.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); } else { display.innerHTML = "Error in calculation"; } }

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