PV Factor Calculator (Click Here or Scroll Down). Present Value Factor Formula. The formula for the present value factor is used to calculate the present value ...PresentValueFactorPVFactorCalculator(ClickHereorScrollDown)Theformulaforthepresentvaluefactorisusedtocalculatethepresentvalueperdollarthatisreceivedinthefuture.Thepresentvaluefactorformulaisbasedontheconceptoftimevalueofmoney.Timevalueofmoneyistheideathatanamountreceivedtodayisworthmorethanifthesameamountwasreceivedatafuturedate.Anyamountreceivedtodaycanbeinvestedtoearnadditionalmonies.UseofthePresentValueFactorFormulaBycalculatingthecurrentvaluetodayperdollarreceivedatafuturedate,theformulaforthepresentvaluefactorcouldthenbeusedtocalculateanamountlargerthanadollar.Thiscanbedonebymultiplyingthepresentvaluefactorbytheamountreceivedatafuturedate.Forexample,ifanindividualiswantingtousethepresentvaluefactortocalculatetoday'svalueof$500receivedin3yearsbasedona10%rate,thentheindividualcouldmultiply$500timesthepresentvaluefactorof3yearsand10%.Thepresentvaluefactorisusuallyfoundonatablethatliststhefactorsbasedontheterm(n)andtherate(r).Oncethepresentvaluefactorisfoundbasedonthetermandrate,itcanbemultipliedbythedollaramounttofindthepresentvalue.Usingtheformulaonthepriorexample,thepresentvaluefactorof3yearsand10%is.751,so$500times.751equals$375.66.HowisthePresentValueFactorFormuladerived?TheformulaforthepresentvaluefactorisfoundbybreakingdowntheactualpresentvalueformulaofByfactoringoutfuturevalue,the2ndportionoftheformulaisthepresentvaluefactorwhichcanbeusedtocreateatabletosimplifythecalculation.ReturntoTopFormulasrelatedtoPresentValueFactorPresentValueNewtoFinance?StartwiththeBasicsPresentValueFutureValueCompoundInterestSimpleInterestPresentValueFactorCalculatorYourbrowserdoesnotsupportiframes.AlphabeticalIndex:A-CD-FG-IJ-LM-PQ-ST-VW-ZHomePrivacyPolicy*Thecontentofthissiteisnotintendedtobefinancialadvice.Thissitewasdesignedforeducationalpurposes.Theusershoulduseinformationprovidedbyanytoolsormaterialathisorherowndis