The present value formula is PV=FV/(1+i) n, where you divide the future value FV by a factor of 1 + i for each period between present and future dates. The present value formula applies a discount to your future value amount, deducting interest earned to find the present value in today's money. You can think of present value as the amount you need to save now to have a certain amount of money in the future. The present value calculator answers the question, 'What do I need to invest today to have a specific sum of money at a future date?' Find the present value of a future sum of money.
