Present value calculator
It answers: how much would I need to deposit today to have this amount at a later date?
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Processing and privacy: The result is calculated inside your browser and your data is not sent to any server.
How to use it
- Enter future amount, annual discount rate, term and compounding frequency.
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
PV = FV / (1 + r/n)^(n × t). Discount factor = 1 / (1 + r/n)^(n × t).
Example
Inputs: Future amount = 10,000 your currency, Annual discount rate = 5 %, Term = 10 years, Compounding frequency = Annually. Result: Present value: 6,139.13; Discount: 3,860.87; Discount factor: 0.613913.
Limits and caveats
- For a single sum; for a series of payments use the present value of annuity calculator.
- The discount rate is your assumption and moves the result a lot.
Questions about this tool
What discount rate should I use?
The return you could really get at similar risk, such as a deposit or government bond for the same term.
Why is the present value smaller?
Money today can be invested to grow, so the same amount in the future is worth less now.
Can I use fractions of a year?
Yes, for example 2.5 for two and a half years.