Present Value Calculator
Estimate today's value of a future amount or a series of regular payments.
Rate and period must use the same interval: for example, annual rate with years or monthly rate with months.
Present value by period
The chart follows the selected future amount or payment stream.
Present value breakdown
Discount schedule
Discounted cash flows by period.
| Period | Cash flow | Present value | Cumulative PV |
|---|
Detailed Breakdown
Future lump sum
Enter the amount expected in the future, the number of periods, and
the discount rate per period. Formula:
PV = FV / (1 + i)^n.
Periodic payments
Switch to Periodic payments to discount equal cash flows. Choose beginning-of-period timing if the first payment occurs immediately; otherwise payments are treated as period-end.
Rate and periods
Keep units aligned: an annual discount rate requires years; a monthly rate requires months. A higher discount rate or longer wait reduces present value.
PV is not NPV
This tool discounts one future amount or a level payment stream. Net present value also includes an initial investment and other cash inflows/outflows. At 0% rate, PV is the sum of the amount or payments.
Examples
At a 5% discount rate, 1,628.89 received in 10 years has a present value of about 1,000 when annual periods are used. A different rate or timing changes today's equivalent.
FAQ
Why is a future amount worth less today?
The discount rate represents the assumed return or opportunity cost over the waiting period, so the present value is lower when the rate or term is positive.
Should I use a monthly or annual rate?
Match the rate period with the number of periods. Do not enter years alongside a monthly rate unless you convert the term to months.
Is present value the same as NPV?
This tool discounts an amount or payment stream. Net present value also subtracts an initial investment or cost.
Related Calculators
- Future Value Calculator — project an amount forward in time.
- Discount Calculator — calculate a price reduction.
- Compound Interest Calculator — compare compounding assumptions.
Internal links: move between today's value and future value with the Future Value Calculator, then compare rate assumptions using the Compound Interest Calculator.