Present Value Calculator
Discount a future lump sum back to today's value at a chosen rate.
Runs 100% in your browser — nothing is uploaded.
Result
Formula
PV = FV ÷ (1 + r)^t
About this calculator
Calculate the present value of a future sum of money, discounted at a given rate over a specified number of periods. This helps you understand how much a future amount is worth today, considering the time value of money.
How to use
- 1
Enter the future value you expect to receive.
- 2
Input the annual discount rate as a percentage and the number of years.
- 3
Click Calculate to see the present value and discount factor.
Frequently asked questions
What is the time value of money?
The time value of money is the concept that money available now is worth more than the same amount in the future due to its potential earning capacity. This core principle underlies present value calculations.
How do I choose the discount rate?
The discount rate should reflect your required rate of return or the opportunity cost of capital. It could be an interest rate, a rate of inflation, or a rate of return from an alternative investment.
Can this calculator handle multiple cash flows?
No, this calculator is designed for a single future lump sum. For multiple cash flows, you would need to calculate the present value of each and sum them.
Please note: Results are estimates for general information only and are not professional or medical/financial advice.