Enter the future value ($), the rate (%), and the number of periods into the calculator to determine the Present Value of Future Rent. 

Present Value of Future Rent Formula

The following formula is used to calculate the Present Value of Future Rent. 

PVf = FV / (1+r)^n

  • Where PVf is the Present Value of Future Rent ($)
  • FV is the future value ($) 
  • r is the rate (%) 
  • n is the number of periods 

How to Calculate Present Value of Future Rent?

The following example problems outline how to calculate Present Value of Future Rent.

Example Problem #1

  1. First, determine the future value ($). In this example, the future value ($) is given as 1000 .
  2. Next, determine the rate (%). For this problem, the rate (%) is given as  .2 .
  3. Next, determine the number of periods. In this case, the number of periods is found to be 10.
  4. Finally, calculate the Present Value of Future Rent using the formula above: 

PVf = FV / (1+r)^n

Inserting the values from above yields: 

PVf = 1000 / (1+.2)^10 = 161.505 ($)


Example Problem #2

The variables needed for this problem are provided below:

future value ($) = 2000

rate (%) = .3

number of periods = 10

Entering these values and solving gives:

PVf = 2000 / (1+.3)^10 = 145.07 ($)