Compound interest (principal)

Reverse solve the present principal from future value, rate, and elapsed years.

If calculation UI does not appear, reload with JavaScript enabled. Related context links below remain available.

Calculation specification

Reviewed on:

Formula basis

For nominal rate r, PV=FV/(1+r/k)^(n×k). For effective rate R, use periodic rate (1+R)^(1/k)−1 in the same formula.

Calculation method

Discounts a future amount to the principal required today using the selected rate type, frequency, and term.

Exclusions and checks required

  • A constant rate and frequency are assumed; tax, fees, and interim cash flows are excluded.
  • The calculator does not assess whether the future amount or return is achievable, nor purchasing power or credit risk.

Example input:：Principal needed for JPY 1.5 million in 10 years

annualRate
5
compoundRateType
nominal
futureValue
1500000
years
10
periodsPerYear
12
digits
10

The result is a discount value under only the entered assumptions.

FAQ

Who is this calculator for? Compound interest (principal)

Reverse solve the present principal from future value, rate, and elapsed years.

What values should I enter?

Applies to: Compound interest / PV = FV ÷ (1+r/k)^(n×k)

How should I interpret this estimate?

Discounts a future amount to the principal required today using the selected rate type, frequency, and term.

How to use

  1. Enter your input values and press Calculate.
  2. Review the result and compare it with expected context.
  3. For nominal rate r, PV=FV/(1+r/k)^(n×k). For effective rate R, use periodic rate (1+R)^(1/k)−1 in the same formula.