Present Value Calculator
PV of a future lump sum.
Inputs
$
%
yrs
Result
Present Value$54,963.27
About the Present Value Calculator
The Present Value Calculator finds what a future sum of money is worth today, given a discount rate and time horizon. Higher rates and longer horizons produce lower present values.
Calculation method
PV = FV ÷ (1 + r)^n, using the compounding frequency you choose.
PV = FV / (1 + r)^nHow to use this calculator
- Enter the future amount you'll receive.
- Enter the discount rate (opportunity cost).
- Enter the number of years until you receive it.
Example
$10,000 received 10 years from now is worth about $5,584 today at a 6% discount rate.
Frequently asked questions
What discount rate should I use?
Use the return you could earn on an alternative investment of similar risk. Treasuries for risk-free, corporate WACC for business projects, or your personal required return.
Why do future dollars matter less than today's?
Because money today can be invested to grow. A dollar received later must be discounted for lost earning potential and for inflation and risk.
What is the time value of money?
The core principle that a dollar today is worth more than a dollar tomorrow. It underlies every valuation and finance calculation.
Disclaimer: This calculator is for informational and educational purposes only and does not constitute financial, tax, or legal advice. Consult a qualified professional for decisions specific to your situation.