Present Value Calculator
What future money is worth today.
Enter your values
Enter the future amount in $.
Enter the discount rate in %.
Enter the years away you are working with.
Enter the annual payment instead in $.
Results update instantly as you type — no submit needed. Your values are remembered on this device, and the shareable link reopens the calculator with exactly these numbers.
- Present value
- $27,919.74
- PV of lump sum
- $27,919.74
- PV of payment stream
- $0.00
- Discount applied
- $22,080.26
- Discount factor
- 0.5584
Quick answer
Present value discounts future money by the return you could otherwise earn, showing what it is worth right now.
PV = FV ÷ (1 + r)^n
At a glance
| What it does | What future money is worth today. |
|---|---|
| Category | Finance |
| Inputs needed | Future amount, Discount rate, Years away, Annual payment instead |
| Main output | Present value |
| Formula | PV = FV ÷ (1 + r)^n |
| Cost | Free — no sign-up, no download |
How to use the Present Value Calculator
- 1Enter the future amount you expect.
- 2Set your discount rate.
- 3Enter how many years away it is.
Inputs explained
- Future amount($)
- Enter the future amount in $.
- Discount rate(%)
- Enter the discount rate in %.
- Years away
- Enter the years away you are working with.
- Annual payment instead($)
- Enter the annual payment instead in $.
Worked example
Using the values the calculator loads with:
Inputs
- Future amount50000 $
- Discount rate6 %
- Years away10
- Annual payment instead0 $
Results
- Present value$27,919.74
- PV of lump sum$27,919.74
- PV of payment stream$0.00
- Discount applied$22,080.26
- Discount factor0.5584
Frequently asked questions
Why discount at all?
Money today can be invested, so future money is worth less.
What rate should I use?
Your realistic alternative return, or your cost of capital for business decisions.
What do I need to enter into the Present Value Calculator?
Just 4 values: future amount, discount rate, years away, annual payment instead. Every field starts with a realistic example, so you can change one number at a time and watch the result update instantly.
How does the Present Value Calculator work out the answer?
Present value discounts future money by the return you could otherwise earn, showing what it is worth right now. It applies the formula PV = FV ÷ (1 + r)^n and shows the working so you can check each step by hand.
Is the Present Value Calculator free, and do I need an account?
It is completely free with no sign-up, no download and no usage limit. Everything is calculated in your browser, so the numbers you type never leave your device.
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.