Present Value Calculator
By Santaji GadepatilinUpdated October 27, 2026
Present value vs Years (years) — other inputs held at your current values.
How to use this calculator
Enter a future amount, the discount rate and the number of years to get its present value. To go the other way, press × on Future amount and type today’s value.
The formula
PV = FV ÷ (1 + r)t
Worked example
You will receive 10,000 in 10 years. With an 8% discount rate:
PV = 10,000 ÷ 1.08¹⁰ = 4,631.93
So 10,000 in 10 years is worth about the same as 4,632 today — because 4,632 invested at 8% would grow to 10,000.
Why money now is worth more
- It can be invested to earn a return.
- Inflation reduces what future money buys.
- Future payments carry a risk of not arriving.
Uses
- Comparing a lump sum today with payments later (lottery, settlements, pensions).
- Valuing bonds and business projects (net present value).
- Deciding whether to pay a bill early for a discount.
Frequently asked questions
What is present value?
The amount you would need to invest today, at a given rate, to have a certain sum in the future. It expresses future money in today's terms.
What discount rate should I use?
The return you could earn elsewhere with similar risk — for example a deposit rate for safe cash flows, or a higher rate for risky business projects.
How is this different from future value?
It is the reverse. Future value grows today's money forward; present value discounts future money back. Press × on Future amount to calculate future value instead.