Present Value Calculator
Calculate the present value of a future sum using PV = FV / (1 + r)n — the discounted-cash-flow basis for valuing future money today.
Inputs
Your required return or the prevailing interest rate.
Present value
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Discount amount
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PV as % of FV
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About Present Value Calculator
Why discount future money?
A dollar today is worth more than a dollar tomorrow because today’s dollar can earn interest. PV translates a future amount into the equivalent value today.
Picking a discount rate
Use your opportunity cost — the return you could earn on similar-risk investments. For a personal decision, often 4-8% real (after inflation) is reasonable.
Use cases
Pricing bonds, deciding whether to take a lump-sum or annuity payout, valuing inheritance or legal settlements, capital-budgeting decisions in business.