Finance calculator
Present Value Calculator
Discount a future amount back to today's estimated value using a rate and term.
Formula
Present value
PV = FV / (1 + r)^n
100,000 due in 10 years at 7% has a lower present value today.
FAQs
What is the discount rate?+
It is the annual rate used to discount future money back to present value.
Is this the same as NPV?+
No. Present value discounts one future amount; NPV handles multiple cash flows and subtracts investment.
How does the Present Value Calculator calculate the result?+
It uses the Present value: PV = FV / (1 + r)^n. 100,000 due in 10 years at 7% has a lower present value today.
What information do I need to use the Present Value Calculator?+
Discount a future amount back to today's estimated value using a rate and term.
How accurate is the Present Value Calculator?+
Present Value Calculator applies the formula and assumptions shown on this page. Results may be rounded for readability, so verify changing rates, thresholds, medical guidance, or legal rules with the cited source or a qualified professional.
What should I check before using the Present Value Calculator result?+
Check that the units, dates, rates, and assumptions match your situation. Change one input at a time to understand which values have the largest effect on the result.
Finance guide
How to use the Present Value Calculator
Discount a future amount back to today's estimated value using a rate and term. The page also explains the present value and shows a practical example: 100,000 due in 10 years at 7% has a lower present value today.
- 1
Enter your details
Enter a rate and term, then complete any other fields shown in the calculator.
- 2
Check the calculation
Review the result alongside the present value: PV = FV / (1 + r)^n.
- 3
Compare scenarios
Change one or more inputs to see how they affect the present Value Calculator result before you use the estimate.
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