Present Value Calculator
Find out what future money is worth today
Present value (PV) is what a future sum of money is worth today after discounting for time and return. It equals FV ÷ (1 + r/n)^(n×t). Enter a future amount, discount rate, and years to get today's value — optionally with recurring payments and inflation.
The Math Behind the Present Value Calculation
| Variable | Meaning |
|---|---|
| PV | Present value — what the money is worth today |
| FV | Future value — the amount you will receive later |
| r | Annual discount rate (your required return) |
| n | Compounding periods per year |
| t | Years until the money is received |
| PMT | Payment received each period (optional) |
Worked Example
$100,000 received in 10 years, discounted at 6% compounded monthly: PV = 100,000 ÷ (1.005)^120 = $54,963. A promise of $100,000 a decade from now is worth about $54,963 today.
💡 Pro Tip: Choose the discount rate carefully
The rate is the whole game. Use the return you could realistically earn on a comparable-risk investment — 4–5% for safe bonds, 7–10% for stocks. Every extra 1% of discount rate can cut PV by 8–10% over ten years. For pensions and lawsuit settlements, run 2–3 rates to see the range.
Present Value Calculator
Inputs
Results
| Year | Value |
|---|---|
| 0 | $54,963 |
| 1 | $58,353 |
| 2 | $61,952 |
| 3 | $65,773 |
| 4 | $69,830 |
| 5 | $74,137 |
| 6 | $78,710 |
| 7 | $83,564 |
| 8 | $88,719 |
| 9 | $94,191 |
| 10 | $100,000 |
Based on your results — what to do next:
Flip it: what could that money grow to?
$54,963 invested today at 6% grows to $98,431 in 10 years — model it with contributions.
Is this enough for retirement?
A present value of $54,963 is what your future $100,000 is worth today — see how it fits your retirement target.
How much to save each month?
To reach $100,000 in 10 years, find the monthly savings required.
Present Value Calculator FAQ
What is present value?
Present value is the current worth of money you will receive in the future, discounted at a rate reflecting what you could earn otherwise. A dollar today is worth more than a dollar tomorrow because it can be invested.
How do I calculate present value?
Divide the future value by (1 + r/n) raised to the power n×t. For a $100,000 payment in 10 years at 6% compounded monthly, PV = $54,963. This calculator does it instantly and also handles recurring payments.
What discount rate should I use?
Use the return available on an alternative investment of similar risk. Risk-free rates (Treasuries) are the floor; equity-like returns of 7–10% are common for long-term planning. Higher risk means a higher discount rate and lower PV.
What is the difference between present value and NPV?
Present value discounts one cash flow or a stream. Net present value (NPV) subtracts the initial investment from the PV of future cash flows to decide whether a project creates value.
Should I take a lump sum or annuity payments?
Compute the present value of the payment stream at your discount rate and compare it to the lump sum. If the lump sum is higher, it is the better deal financially, ignoring taxes and risk preferences.