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Present Value

Finds today's worth of a future sum at a given discount rate.

Interactive inputs coming — use the formula and example below.

Przykład

$10,000 in 10 years at 5% is worth about $6,139 today.

Jak używać

  • Use the formula below with your own figures.

Wzór

PV = FV ÷ (1+r)ⁿ.

Przykład

$10,000 in 10 years at 5% is worth about $6,139 today.

Częste pytania

Why discount?

Money today can be invested, so future money is worth less.

What rate to use?

Your expected return or cost of capital.

Wskazówki

  • Time in the market beats timing the market.
  • Reinvest returns to let compounding work.
  • Keep fees low — they compound against you.

Pojęcia

Compounding
Earning returns on past returns.
CAGR
The smoothed annual growth rate.
Yield
Income as a percent of price.