Find what a future sum or stream of payments is worth today at your discount rate.
Optional periodic payments
Please do not make financial decisions based on these results.
What is the Present Value Calculator?
Present value is what a future amount, or a series of payments, is worth today after discounting for interest or inflation.
Time value of money
A dollar today is worth more than a dollar in the future. The present value calculator and the future value calculator translate money across time, and the finance calculator solves any related unknown. Remember that investment returns are never guaranteed.
How to use the Present Value Calculator
- Enter your numbers. Start with Future value ($), Discount rate (% per year), Time: years. Use a rate of return you consider realistic; small changes compound into large differences. Fields marked optional can stay at zero.
- Choose your options. Compounding, Payment frequency, Payments at the… change how the result is worked out, and the form updates to match your choice.
- Read the result. The highlighted box gives the Present value, and the cards below show PV of the future amount, PV of the payments, Total future cash. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Present Value Calculator using the default values shown in the calculator above:
Inputs
| Future value ($) | 50,000 |
|---|---|
| Discount rate (% per year) | 6 |
| Time: years | 10 |
| Compounding | Monthly |
| Payment frequency | Monthly |
| Payments at the… | End of each period |
Results
| Present value | $27,481.64 |
|---|---|
| PV of the future amount | $27,481.64 |
| PV of the payments | $0.00 |
| Total future cash | $50,000.00 |
| Discount (value lost to time) | $22,518.36 |
With these inputs the calculator returns Present value: $27,481.64. Change any value in the calculator to see how the result moves.
What the results tell you
The results panel of the Present Value Calculator reports Present value, pv of the future amount, pv of the payments, total future cash and discount (value lost to time). Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Tips for better results
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. Investment returns are not guaranteed. The result shows what the numbers you enter would produce, not what the market will do. It is for information, not financial, tax or legal advice.
Frequently asked questions
Which discount rate should I use?
Use your expected return or required rate of return.
How does discounting work?
Each future dollar is divided by (1 + rate) for every period you wait, so distant dollars are worth less today.
What is the difference between simple and compound interest?
You choose it in the compounding field of this calculator: daily, weekly, monthly, quarterly, semiannual, annual or continuous.
What rate of return should I assume?
There is no guaranteed rate. Test a range of conservative and optimistic rates, and remember that fees and inflation reduce your real return.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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