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Present Value Calculator

What is a future amount worth today, given a discount rate? PV = FV / (1 + r/n)^(n·t).

Instant results Private — runs in your browser Updated January 1970

Inputs

Future value

Discount rate

Years to future

Compounding

Present value

$25,417.46

$50,000.00 in 10 years @ 7%

Discount factor

0.5083

Total discount

$24,582.54

PV = FV ÷ (1 + r/n)^(n·t). Higher rate or longer horizon = lower present value.

Why do I discount future money?

A dollar today can be invested at rate r and grow. A dollar received in the future is worth less because you missed that growth.

What discount rate should I use?

Your opportunity cost — the return you could realistically earn on money today (e.g. 5–7% for a diversified investor).

Does inflation affect this?

Yes. Use a real discount rate (nominal − inflation) if you're comparing to today's purchasing power.

What if the discount rate is 0%?

PV = FV. Money in the future is worth the same as today only if you can't earn any return.

Is PV used in stock valuation?

Yes — DCF (discounted cash flow) analysis sums the PV of all future free cash flows to estimate intrinsic value.

Results are estimates for educational purposes only and are not financial advice. Verify with a qualified professional before making decisions.

Last updated January 1970