Present Value Calculator
Calculate the present value of a future amount by discounting it at a given rate
Present Value
Discount Factor
Calculation Steps
About Present Value
Present value is the current worth of a future sum of money given a specified rate of return. Because money available today can be invested to earn interest, a dollar received in the future is worth less than a dollar received today. Discounting future cash flows back to the present lets you compare amounts received at different points in time.
The Formula
PV = FV / (1 + i)periods, where i is the periodic rate (annual rate divided by compounds per year) and periods is compounds per year multiplied by the number of years. For example, $1,628.89 discounted at 5% over 10 years equals $1,000.00.
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Disclaimer: This calculator provides estimates for educational purposes only. Results do not account for taxes, fees, inflation, or market fluctuations. Actual investment returns may vary. Consult with a qualified financial advisor before making investment decisions.