# Present Value Calculator  [enlarge]

## Compare Investment Options with our Free Present Value Calculator

Our free present value calculator template enables you to compare two investment scenarios. You will appreciate being able to calculate the present value of an annuity without understanding the present value calculator annuity formula or lump-sum present value calculation. Get your own free present value calculator here!

## Calculations Performed by the Present Value Calculator Online

The present value calculator online will tell you the present value of an amount to be received in the future. The present value calculator annuity formula contained in this Excel template will calculate the current value of a series of equal future payments.

## Illustration of Value Calculator Online

We show two investment calculations in the illustration of our present value calculator online spreadsheet. Using a 12 percent interest rate, the spreadsheet calculations reveal whether it is better to receive \$3,500 each year for four years, by using the present value calculator annuity formula, or to receive \$14,000 at the end of four years.

In the first scenario, the built-in present value calculator annuity formula calculates in today’s dollars the value of four annual future payments of \$3,500. Thanks to the annuity formula, the present value calculator displays the present value of \$10,630.72. The present value gain of \$630.72 is the difference between the \$10,630.72 and the \$10,000 investment.

In the second scenario, the present value calculator tells you the value today of the payment of \$14,000 in four years. Today’s value of this future amount is \$8,897.25. The present value calculator displays a present value loss of \$1,102.75, the difference between \$8,897.25 and the \$10,000 investment.

The present value of \$10,630.72, as calculated by our present value annuity calculator formula, is obviously higher than the lump-sum scenario that has a calculated present value of \$8,897.25. The first scenario is worth more in today’s dollars than the second scenario, and the present value calculator states that the first option is preferable with the \$10,000 investment.

Please enjoy our free template and remember, we offer other free Excel templates geared towards business, home and gaming use.