Present Value Calculator
Calculate how much a future sum of money is worth today, given a discount rate.
Calculate
Enter your values below.
Result
Present value
0
Formula used
PV = FV ÷ (1 + r/n)n×t
Example: $20,000 in 10 years at a 7% discount rate → present value ≈ $10,167.30.
How to use this calculator
- Enter Future value, Annual discount rate (%), Years, Compounding periods per year.
- Press Calculate to see your result instantly.
FAQ
Frequently asked questions
What is present value?
The current worth of a sum of money to be received in the future, discounted back at a given rate.
Why does present value matter?
Money today is generally worth more than the same amount in the future, due to its earning potential — present value quantifies that.
What discount rate should I use?
Typically your expected investment return or cost of capital.
How is this the opposite of future value?
Future value projects forward from today; present value discounts backward from a future amount.