Home > Income Tax > Help Center > Present Value of Future Money Calculator Last Updated: Jan 31st 2024
Find out how much the money you plan to get in the future is worth right now. The EZTax calculator helps you figure out how much money to save today so that you have it later.
Calculator helps find the net present value in rupees of something that will be worth in the future, along with the number of years and the rate of inflation per year. It can also help you save money and pick better investments.
To account for inflation, the Present Value should be changed using a real discount rate. This is because inflation makes money less valuable over time. Hence, give real inflation rate in the above calculator.
For a common person, it's simply to know how much the value of money that is expected to receive in future. Useful when one is investing in fixed income instruments. Also used in financial computations, such as budgeting, investment analysis, and loan calculations.
Type in the amount of money you are planning to receive, the average rate of inflation you think it will have each year, and the number of periods. The tool will figure out the Present Value for you.
The formula for Present Value is
PV = FV / (1 + r)^n
where PV is Present Value, FV is future value of investment, r is the expected annual inflation rate, and n is the number of periods.