Present Value Calculator
Find the present value of a future lump sum plus any level payments, discounted at a periodic rate. Calculates in your browser.
Present value
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Show the math
Present value discounts a future amount back to today at the periodic rate:
PV = FV ÷ (1 + i)n
Money in the future is worth less than money now because it could have been invested. Any level payments are discounted and added in. All math runs locally in your browser.
What this does
The present value calculator finds what a future lump sum — plus any level payments along the way — is worth today, once discounted at a periodic interest rate. It is the foundation of the time value of money.
How to use it
- Enter the future amount you will receive.
- Enter the interest (discount) rate per period and the number of periods.
- Add a payment per period if there is one.
- Read the present value.
How it works
The future lump sum is discounted back by the periodic rate, and any level payments are discounted as an annuity. Use the rate per period that matches your periods — a monthly rate with monthly periods.
PV = FV ÷ (1 + i)ⁿ + PMT × (1 − (1 + i)⁻ⁿ) ÷ i
Understanding your result
Present value tells you the most you should pay today for a future payoff, which is exactly how investments and offers are compared on equal footing. A higher discount rate or a longer wait shrinks the present value, because money you receive later is worth less than money in hand now.
Example
At 5% per year, $1,000 received in 3 years is worth about $863.84 today.
Sources & methodology
Last updated .
Frequently asked questions
What is present value?
It is the value today of money you will receive in the future, discounted at an interest rate. A future amount is always worth less than the same amount today.
What rate should I enter?
Use the rate per period that matches your periods — a monthly rate with monthly periods, an annual rate with yearly periods.
Why is present value lower than the future amount?
Because money can earn interest over time, a future sum must be discounted back to today, making it smaller. A higher rate or longer wait lowers it further.
Is my data stored?
No. Everything is calculated locally in your browser.
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