Finance calculator
Present Value Calculator
Discount a future amount back to today's estimated value using a rate and term.
FormulaPV = FV / (1 + r)^n
Formula
Present value
PV = FV / (1 + r)^n
100,000 due in 10 years at 7% has a lower present value today.
FAQ6 common questions for this calculator.
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?+
For the Present Value Calculator, 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?+
For the Present Value Calculator, enter a rate and term. Keep the units consistent with the calculator fields and compare your setup with the worked example on the page.
How accurate is the Present Value Calculator?+
Present Value Calculator is accurate for the rates, amounts, dates, and rules entered. It uses the Present value shown on this page. Real products can differ because of fees, taxes, contract terms, or changing official thresholds.
What should I check before using the Present Value Calculator result?+
For the Present Value Calculator, check a rate and term, then compare the Present value and worked example with the contract or source you will rely on. Fees, tax year, currency, and payment timing can change the final decision.
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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.