Skip to content

Finance · free · no sign-up

Present Value Calculator

Present value tells you how much a future sum is worth today. It is the basis of pricing bonds, valuing investments and comparing offers paid at different times.

How it works Report a problem

Present Value Calculator

Determine the current worth of a future sum of money

$0.00
Present Value
The amount you'd need to invest today
Total Interest
$0.00
Discount Factor
0.00
Effective Rate
0.00%
Present Value vs Future Interest

Present value reverses the compounding question: instead of what money will grow to, it asks what a future amount is worth right now. That is the number you need when comparing a lump sum today against payments promised over years.

How to use this calculator

  • Enter the future amount (or the payment per period).
  • Add the discount rate: the return you could earn, or your required rate.
  • Enter the number of years or periods.
  • Press calculate to see the present value.

Settlements and prizes: where this bites

Offers like "a large sum over 20 years" vs "a smaller lump sum now" are decided by present value. At a sensible discount rate, the lump sum wins more often than the headline totals suggest, because distant payments shrink hard when discounted. Run both options here before choosing.

Frequently asked questions

What is the present value formula?
PV = FV divided by (1 + r)^t, where FV is the future amount, r the rate per period and t the number of periods.
What discount rate should I use?
The return you could realistically earn on the money in the meantime, adjusted for how certain the future payments are. Riskier promises deserve a higher rate.
Is present value the opposite of future value?
Exactly. Future value grows today's money forward; present value discounts future money back. They are the same relationship read in opposite directions.