| **Navigation:**  [[templates.htm|Templates]] > Guide to all Templates > [[additional libraries and templates.htm|Additional Libraries and Templates]] > Finance Library >====== PV (present value) ====== | [[prepv  present value with prepayment .htm|{{btn_prev_n.gif|Previous page}}]][[additional libraries and templates.htm|{{btn_home_n.gif|Return to chapter overview}}]][[rate  rate of annuity .htm|{{btn_next_n.gif|Next page}}]] |
|  ||

**PV**(//periods,rate,payment,futurevalue//)

| **PV** | Computes the present value required to reach a targeted future value. |
| //periods// | A numeric constant or variable containing the number of periods in which a cash flow occurred. |
| //rate// | A numeric constant or variable containing the //periodic //rate of return. |
| //payment// | A numeric constant or variable containing the periodic payment amount. |
| //futurevalue// | A numeric constant or variable containing the amount of the desired or targeted future value of the investment. |

**PV **determines the present value required today to reach a desired amount (//futurevalue//) based upon the total number of periods (//periods//), a periodic interest rate (//rate//), and a payment amount (//payment//). If payments occur at the beginning of each period then use the **PREPV **function, which takes into account the added interest earned on each period's payment.

Periodic rate may be calculated as follows:

PeriodicRate = AnnualInterestRate / (PeriodsPerYear * 100)

{{note.jpg|NOTE.jpg}}

If the present value is less than the future value (annuities), payments are positive, and conversely, if the present value is greater than the future value (loans), payments are negative.

**Return Data Type:**     DECIMAL

**Internal Formulas:**

{{pv.jpg|PV.jpg}}

where frac(periods) is the fractional portion of the //periods //parameter.

**Example:**

**  PeriodicRate = AnnualRate / (PeriodsPerYear * 100)**

**  IF TimeOfPayment = 'Beginning of Periods'**

**   PresentValue = PREPV(TotalPeriods,PeriodicRate,Payment,FutureValue)**

**  ELSE**

**   PresentValue = PV(TotalPeriods,PeriodicRate,Payment,FutureValue)**

**  END**