Present Value Calculator
Calculate the present value of a future sum of money at a chosen discount rate. Free and private.
Independently verified for accuracy
Calculator by Toolsloft ↗- Present value
- 11167.9
- Discount applied
- 8832.1
Find what a future sum of money is worth today at a given discount rate. Enter the amount you expect to receive, the annual rate, and how many years away it is. The present value is what you would accept now instead of waiting.
How this is calculated
Present value discounts the future amount with annual compounding: PV equals the future value divided by (1 plus the annual rate) raised to the number of years. The interest shown is the future amount minus that present value.
How to use
- Enter the future amount you expect to receive.
- Enter the annual discount rate.
- Enter the number of years until you receive it.
- Read the present value and the discount applied.
Examples
- $20,000 in 10 years at 6%:
Present value $11,167.90 - $10,000 in 3 years at 5%:
Present value $8,638.38
FAQ
- What discount rate should I use?
- Use the return you could otherwise earn on that money, or the interest rate that reflects the risk of the future payment. A higher rate lowers the present value.
- Does this use annual or monthly compounding?
- Annual compounding. The rate is applied once per year over the number of years you enter.