Present Value Calculator
What a future sum is worth in today's money.
Present Value Calculator
| Present value | $6,139.13 |
| Discount (FV − PV) | $3,860.87 |
$10,000 received in 10 years, discounted at 5%, is worth $6,139.13 today.
Present value answers: what is a payment you will receive in the future worth right now? Because money can earn interest, a future dollar is worth less than a dollar today.
Enter the future amount, a discount rate and the time to find its present value and the total discount.
The formula
Worked example
$10,000 received in 10 years, discounted at 5%, is worth $6,139.13 today.
The example is pre-loaded in the result panel — press Calculate with your own numbers to replace it.
Frequently asked questions
What discount rate should I use?
Use the return you could reliably earn elsewhere (your opportunity cost), or an inflation rate to measure purchasing power.
Why does the rate matter so much?
Discounting is exponential: at 5%, money halves in value roughly every 14 years; at 10%, roughly every 7 years.
Category: Finance calculators
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