Present Value Calculator
Use this calculator to determine the present value of a known final future value plus a stream of deposits.
How the present value calculator works
It discounts a future sum back to today using your chosen rate, answering what that money is worth now. The gap between the two figures is the time value of money.
Worked example: with future amount of $100,000, annual discount rate of 6.00% and years from now of 20, the present value calculator shows value today of $31,180.
- Future amount
- $100,000
- Present value
- $31,180
- Discount (time value)
- $68,820
- Discount factor
- 0.312
The formula
Present value = future amount ÷ (1 + r)ⁿ, where r is the annual discount rate and n the number of years.
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.
Questions about the present value calculator
What is present value used for?
Comparing money available at different times — for example, whether a lump sum now beats a larger amount later, or valuing a future payout in today's terms.
What discount rate should I choose?
Use the return you could realistically earn on the money instead. A higher discount rate makes future money worth less today.
Why is future money worth less today?
Because money you hold now can be invested to grow. A dollar arriving years from now misses that growth, so it is worth less than a dollar today.
Is the Present Value Calculator free to use?
Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.