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Present Value Calculator

Calculate the present value of a future amount or a series of payments at a discount rate. See the discount factor and how much the future sum is worth today.

Present value
6,139.13
Present value of the future amount
6,139.13
Discount
3,860.87
Discount factor
0.613913

What future money is worth today

Money you'll receive later is worth less than the same money now, because today's money could be invested. Present value discounts a future amount back to today: PV = FV ÷ (1 + i)^n. $10,000 received in 10 years, discounted at 5% a year, is worth $6,139.13 today. Add a regular payment to find the present value of an annuity, such as a pension or a lottery payout taken in installments.

How to use it

  1. 1

    Enter the future amount

    What you'll receive, and when.

  2. 2

    Set the discount rate

    The return you could earn elsewhere, and the compounding.

  3. 3

    Read the present value

    Today's value, the discount and the discount factor.

Frequently asked questions

What is the present value formula?

PV = FV ÷ (1 + i)^n. For an annuity: PMT × (1 − (1 + i)^−n) ÷ i.

Which discount rate should I use?

The return you'd expect from an investment with similar risk, or your borrowing rate.

What is a discount factor?

1 ÷ (1 + i)^n: the value today of 1 unit received after n periods.

Is my data stored?

No. The calculation runs on your device.

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