Present Value Calculator
What is a future amount worth today?
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Present Value Calculator by TheCalcTools
How the Present Value Calculator works
Enter the future amount, the discount rate and the number of years.
Optionally add a level annual payment received at the end of each year.
Each future amount is divided by (1 + rate) for every year it is away.
The formula
Worked example
Using the default values shown in the calculator:
| Future value | $100000 |
|---|---|
| Discount rate (%) | 6 % |
| Years | 10 |
| Annual payment (optional) | $0 |
- $100,000 in 10 years at 6%: 100,000 ÷ 1.06¹⁰.
- Present value = $55,839.48.
Result:
| Present value of the lump sum | $55,839.48 |
|---|---|
| Present value of the payments | $0.00 |
| Total present value | $55,839.48 |
Frequently asked questions
What is the discount rate?
The return you could earn elsewhere, or a rate reflecting risk. A higher discount rate gives a lower present value.
Why is money today worth more?
You can invest it to earn a return, and inflation erodes the future purchasing power of the same amount.
Sources and further reading
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This calculator gives estimates for information only. It is not financial advice, and your lender's or provider's figures will govern. Rates, fees and rules vary. See our disclaimer.