Present Value Calculator
Find what a future amount is worth today at a chosen discount rate.
What future money is worth now
A sum you will receive later is worth less than the same sum today, because money can earn a return in the meantime. Present value captures that by discounting a future amount back to today at a chosen rate.
At a 5% rate, 1,000 received in ten years is worth about 614 today. Raise the rate or push the payment further out and the present value falls; this is the core idea behind valuing any future cash flow.
Exact and private
It applies the discounting formula in your browser, so the calculation is instant and nothing you enter is uploaded.
Frequently Asked Questions
What is present value?
The value today of money you will receive in the future, discounted because a dollar now is worth more than a dollar later.
What is the formula?
PV = FV divided by (1 + rate) to the power of the number of periods. A higher rate or longer wait lowers the present value.
What rate should I use?
Your discount rate — often the return you could earn elsewhere or your cost of capital. Small changes move the answer noticeably.
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