Present Value Calculator

Calculate the current present value (PV) of future lump sums and periodic cash flow streams using a discount rate.

Calculator Inputs

$
Money to be received in future.
%
Required rate of return.
yrs
Number of years.

Calculated Results

Calculated Present Value (PV)
$38,554.33
Future Lump Sum Amount $100,000.00
Discount Rate (r) 10.00% / year
Discount Period 10 Years
Values calculate live as you adjust inputs.

About Present Value Calculator

Discounts future money back to today's value based on the principle that a dollar today is worth more than a dollar tomorrow.

What is Present Value Calculator?

Discounts future money back to today's value based on the principle that a dollar today is worth more than a dollar tomorrow.

How to Use This Calculator

  1. Enter future cash amount to be received.
  2. Enter discount interest rate.
  3. Enter time horizon in years.
  4. View present discounted cash value.

The Mathematical Formula & Variables

PV = FV / (1 + r)^t

Step-by-Step Worked Example

Scenario: $100,000 received in 10 years at 10% discount rate.

  1. (1 + 0.10)^10 = (1.10)^10 = 2.59374.
  2. PV = 100,000 / 2.59374 = $38,554.33.

Result: $38,554.33

Frequently Asked Questions

How does the discount rate affect present value?

A higher discount rate reduces present value, reflecting greater opportunity cost and inflation risk.