Present Value Calculator
Find what a single future amount is worth today: PV = FV ÷ (1 + r)ⁿ, given the discount rate per period and the number of periods.
Last updated: October 2026
Present Value
$10,208.75
Formula below · 3 sources (openstax.org, spscc.pressbooks.pub, investopedia.com) · Updated Oct 2026
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About this calculator
Money received later is worth less than the same amount today, because today's money could be invested in the meantime. Present value discounts a future amount back to today:
PV = FV ÷ (1 + r)ⁿ
FV is the future amount, r the discount rate per period (8% = 0.08) and n the number of periods. The rate and the periods must match: an annual rate with years, or a monthly rate (annual ÷ 12) with months. Present value is the reverse of compound growth: investing the PV at rate r for n periods grows it back to FV.
Choosing the rate
The discount rate is the return you could earn elsewhere on money of similar risk. A safe, guaranteed payment might be discounted at a Treasury yield; a risky business cash flow at a higher required return. Present value is very sensitive to the rate over long horizons, so it is worth trying a few rates.
This page values one future amount. For a series of equal payments use the present value of annuity calculator, and for an investment with several cash flows use the NPV calculator.
How to use
Enter the future amount, the discount rate per period and the number of periods. The default asks what $15,000 received in 5 years is worth at 8% a year: 15,000 ÷ 1.08⁵ = $10,208.75. $50,000 due in 20 years at 5% is worth 50,000 ÷ 1.05²⁰ = $18,844.47 today. With monthly compounding at 6% a year for 3 years, enter 0.5 as the rate and 36 periods.
Frequently asked questions
Why is future money worth less?
Because money you have now can earn a return, prices tend to rise, and a promised future payment carries some risk of not arriving. The discount rate rolls these into one number.
How do I choose a discount rate?
Use the return you would otherwise earn on money with similar risk: a Treasury or savings rate for a guaranteed amount, your expected portfolio return or cost of capital for something riskier. A higher rate gives a lower present value.
What is the difference between PV and NPV?
Present value discounts one future amount. Net present value adds up the present values of all of an investment's cash flows and subtracts what it costs today, which tells you whether it beats your required return.
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