Present Value Calculator
Find what a future amount of money is worth today at a given discount rate.
Try an example
$35,034.38
About this calculator
How This Present Value Calculator Works
Enter a future amount, a discount rate, and a number of years, and the calculator returns what that future amount is worth today — the core idea behind the time value of money.
Worked Example
$100,000 received 18 years from now, discounted at 6% annually, is worth $35,034.38 today — meaning $64,965.62 of that future amount is effectively the "cost" of having to wait 18 years for it.
The Formula
PV = FV ÷ (1 + r)ⁿ, where FV is the future value, r is the discount rate, and n is the number of years. This is the compound interest formula solved in reverse — instead of growing a present amount forward, it discounts a future amount backward to what it's equivalent to today.
Why a Dollar Today Is Worth More Than a Dollar Later
Money available now can be invested and grow; money promised later can't start earning until it arrives. The discount rate represents that opportunity cost — a higher rate means future money is discounted more heavily, since the alternative (investing today's money) would have grown faster. This is the same logic used to value bonds, compare lottery lump-sum versus annuity payouts, and evaluate whether a future payment is a good deal.
Worked example
$100,000 needed in 18 years, discounted at 6% a year, is worth about $35,034 today — that's how much you'd need to invest now, at that rate of return, to reach $100,000 by then.
Frequently asked questions
How is this different from the Future Value Calculator?
They're inverses of each other: Future Value grows a present amount forward in time, while Present Value discounts a future amount back to today's terms.
What discount rate should I use?
It depends on the context — a common choice is the return you could reasonably expect from investing the money elsewhere, since that's the opportunity cost of not having it today.
Does a higher discount rate increase or decrease present value?
Decrease — the higher the rate, the less a future dollar is considered worth today, since it implies faster alternative growth.