Present Value Calculator
Calculate present value, annuity present value, future value, discount amount, real value after inflation, after-tax value, and time value of money…
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Present Value Calculator
Present Value · Annuity PV · Future ValueTime value of money
Present value discounts a future cash flow back to today. A higher rate or longer time horizon lowers the amount that future money is worth now.
PV = FV ÷ (1 + r)^n
Present Value Today$46,319
$100,000 received in 10.00 yrs is worth about $46,319 today at 8.00%.
PV discount summary
The discount amount is $53,681, leaving 46.3% of the future value in today's money.
Year-by-year PV discount schedule
| Year | Discount Factor | PV at Year | PV Erosion | % of FV Remaining |
|---|---|---|---|---|
| 1 | 0.9259 | $92,593 | $7,407 | 92.6% |
| 2 | 0.8573 | $85,734 | $14,266 | 85.7% |
| 3 | 0.7938 | $79,383 | $20,617 | 79.4% |
| 4 | 0.7350 | $73,503 | $26,497 | 73.5% |
| 5 | 0.6806 | $68,058 | $31,942 | 68.1% |
| 6 | 0.6302 | $63,017 | $36,983 | 63.0% |
| 7 | 0.5835 | $58,349 | $41,651 | 58.3% |
| 8 | 0.5403 | $54,027 | $45,973 | 54.0% |
| 9 | 0.5002 | $50,025 | $49,975 | 50.0% |
| 10 | 0.4632 | $46,319 | $53,681 | 46.3% |
PV scenarios
If discount rate was 2% lower$55,839
If discount rate was 2% higher$38,554
If horizon was 5 years shorter$68,058
PV of $1M at same rate and period$463,193
FV needed for $1 today$2.16
Formula
How present value is calculated
Present value discounts a future amount back to today using a required return or discount rate. It helps compare future money with money available now.
PV = FV ÷ (1 + r)^n
FV = PV × (1 + r)^n
Annuity value
How annuity present value works
Annuity PV converts a series of equal payments into one lump-sum value today. It is commonly used for pensions, leases, bonds, retirement income, and loan comparisons.
Annuity PV = PMT × [1 − (1 + r)^-n] ÷ r
Use cases
When to use this Present Value Calculator
Use it to discount future cash flows, value annuity payments, estimate future value, compare lump sums, and understand time value of money.
Calculate the present value of a future lump sum
Use the result as a planning estimate, then review risk, tax, inflation, discount-rate assumptions, and professional advice before making major financial decisions.
Value pension, lease, bond, or annuity payment streams
Use the result as a planning estimate, then review risk, tax, inflation, discount-rate assumptions, and professional advice before making major financial decisions.
Estimate future value from today’s investment amount
Use the result as a planning estimate, then review risk, tax, inflation, discount-rate assumptions, and professional advice before making major financial decisions.
Compare nominal value with inflation-adjusted real value
Use the result as a planning estimate, then review risk, tax, inflation, discount-rate assumptions, and professional advice before making major financial decisions.
Review discount factors and year-by-year PV schedules
Use the result as a planning estimate, then review risk, tax, inflation, discount-rate assumptions, and professional advice before making major financial decisions.
Run what-if scenarios for rates, time periods, and future goals
Use the result as a planning estimate, then review risk, tax, inflation, discount-rate assumptions, and professional advice before making major financial decisions.
Calculator details
Present Value Calculator formula, assumptions, and examples
Last updated: July 2026
Formula used
Formula used
Present Value Calculator uses the values you enter to estimate totals, rates, percentages, payments, balances, or comparison results for planning.
Assumptions
Assumptions
- The numbers entered are accurate and use the same currency or time period.
- Rates, taxes, fees, deductions, and contribution rules can change.
- Rounding, timing, and real-world provider rules may cause small differences.
Example calculation
Example calculation
Enter a simple present value calculator scenario, review the estimated result, then adjust one input at a time to compare outcomes.
When to use this calculator
When to use this calculator
Calculate the present value of a future lump sum
Disclaimer
Disclaimer
This calculator is for estimation and educational use only. It does not replace professional financial, tax, legal, mortgage, investment, or accounting advice.
Questions
Frequently Asked Questions
What is present value?
Present value is the amount a future cash flow is worth today after discounting it by a required return or discount rate. It reflects the time value of money.
How do I calculate present value?
For a single future amount, divide the future value by (1 + discount rate) raised to the number of periods. The calculator also supports compounding frequency, inflation, and tax assumptions.
What is annuity present value?
Annuity present value is the current lump-sum value of a series of recurring payments. It is useful for pensions, leases, loans, bonds, and retirement income streams.
Why does a higher discount rate reduce present value?
A higher discount rate means future money must be discounted more heavily because today’s money is assumed to have a higher opportunity cost or required return.
Can this calculator replace financial advice?
No. Results are estimates only. Major financial decisions should also consider risk, taxes, inflation, fees, cash-flow timing, and guidance from a qualified professional.
