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- Shows what a future amount is worth in today’s money.
- Also values a series of regular payments (an annuity).
- Uses a discount rate and yearly to daily compounding.
- Shows the discount factor and the working.
How to use the present value calculator
Enter the future amount
A sum you will receive or need later. Use 0 if you only have regular payments.
Enter regular payments
For example $1,000 a year. Use 0 for a single sum.
Set the discount rate and years
The rate you could earn elsewhere, and how far in the future.
Read the present value
See today’s value and how much the delay costs.
Present value formulas
Single future sum
PV = FV ÷ (1 + i)ⁿ
Regular payments (annuity)
PV = PMT × (1 − (1 + i)⁻ⁿ) ÷ i
Multiply by (1 + i) if payments come at the start of each period.
Example 1: a future lump sum
$10,000 in 10 years at a 5% discount rate.
- Discount factor 0.613913
- Present value $6,139.13
Receiving $10,000 in ten years is worth about $6,139 today if you could earn 5% elsewhere.
Example 2: an annuity
$1,000 a year for 10 years at 5%.
- Total received $10,000
- Present value $7,721.73
Where a present value calculator helps
Comparing offers
Compare a lump sum now with payments later.
Lottery and settlements
Value annual payouts against a cash option.
Investing and business
Discount future cash flows to judge an investment.
Finance classes
Check time value of money answers.
Go forward in time with the future value calculator, see how long savings last with the how long will my money last calculator, or compare a lottery payout with the lottery tax calculator.
Present value calculator FAQ
What is present value?
The value today of money you will receive in the future, after allowing for the interest you could have earned.
What discount rate should I use?
The return you could reasonably earn on a similar investment, or your cost of borrowing.
Why is present value lower than the future amount?
Money today can be invested to grow, so a promise of money later is worth less now.
What is a discount factor?
1 ÷ (1 + i)ⁿ. Multiply any future amount by it to get its present value.
Can I value both a lump sum and payments?
Yes. Enter both, and the calculator adds their present values.
Does it include inflation?
Only if you build it into the discount rate.