Present Value (PV) Calculator

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Present Value is the current value of a future sum of money or cash flows, discounted at a specific rate of return. More info →

Input

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How This Calculator Works

Present Value tells you what an amount you will receive in the future is worth today. Money in the future is worth less than money now, so the calculator discounts the future amount back to today at your discount rate, compounded once a year.

The Formula

PV = FV ÷ (1 + r)ⁿ

FV = future value · r = annual discount rate · n = years + months ÷ 12

What Each Input Does

Future Value: The amount you expect to receive in the future.
Discount Rate (%): The annual return you could earn elsewhere, or your required return. A higher rate gives a lower present value.
Number of Years / Number of Months: How far in the future the amount is received. Months are added as a fraction of a year.

Step by Step

Years and months are combined into one period in years.
The discount factor (1 + r)ⁿ is worked out.
The future value is divided by that factor.
The result is rounded to the nearest whole amount.

Reading the Result

Lower PV – the further away or the higher the rate, the less it is worth today.

0% rate – the present value equals the future value.

Quick Example

Future value 100,000, discount rate 10%, 5 years 0 months. PV = 100,000 ÷ 1.10⁵ = 62,092. Receiving 100,000 in five years is worth the same as having 62,092 today.