Present Value Calculator
Find what a future amount is worth in today's dollars, given a discount rate and a time horizon.
Choose what to solve for — that field becomes the result
e.g. 6% for stocks, 4.5% for a CD
Present Value
$5,583.95
$10,000 received in 10 years is worth that much today at a 6.00% discount rate.
Future Amount
$10,000
What you'll receive then
Discount Applied
$4,416
44.2% of the future amount
Present Value
$5,584
What it's worth today
The calculation
PV = FV ÷ (1 + r)^n
$5,584 = $10,000 ÷ (1 + 6.00%)^10
How present value grows as time shortens
As the payout draws nearer, less time-value discounting is applied — so the present value rises toward the future amount.
Present value is the cornerstone of time-value-of-money analysis — used to compare lump sums received at different times. For a stream of equal periodic payments (a pension or annuity), use the Annuity Calculator. For the opposite question ("what will today's money grow to?"), use the Future Value Calculator.
How to use this calculator
- Enter the future amount — the lump sum you’ll receive at some point in the future.
- Choose a discount rate — the annual return you could earn on today’s money. 5–8% is a typical investment range; use a lower number for safer comparisons.
- Enter the number of years — how far in the future the payment arrives.
The headline shows the present value: today’s dollars equivalent of that future amount. The chart shows how the present value rises as the wait shrinks.
How it works
Present value applies the time-value of money:
PV = FV ÷ (1 + r)^n
The factor (1 + r)^n is the same one used to compound a present amount into the future — present value just runs it in reverse. The higher the discount rate, the more aggressively the future is discounted; the longer the horizon, the more the compounding factor erodes the present value.
Use present value whenever you’re comparing money received at different times — for example, $50,000 today versus $80,000 in 10 years. At a 6% discount rate, the future $80,000 is worth about $44,700 today, so the immediate $50,000 wins.
Frequently Asked Questions
What is present value? ▾
Present value (PV) is what a future amount of money is worth today, once you account for the return you could earn on that money in the meantime. A dollar in five years is worth less than a dollar today because today's dollar can be invested. PV translates the future amount into today's equivalent so you can compare lump sums received at different times.
What is the present value formula? ▾
PV = FV ÷ (1 + r)^n, where FV is the future amount, r is the annual discount rate, and n is the number of years. The denominator (1 + r)^n is the time-value-of-money factor — the same factor that compounds an investment forward is used here to discount a future amount backward.
What discount rate should I use? ▾
Use the annual return you could realistically earn on the money if you had it today. For comparing investment choices, that's often your expected portfolio return — 5–8% is a common range. For personal cash-flow comparisons people often use a savings or CD rate. A higher discount rate makes the present value smaller; a lower one makes it larger.
Why does present value shrink with time? ▾
Because the longer you wait, the longer you go without earning a return. The (1 + r)^n factor compounds, so doubling the years more than doubles the discount. At 6%, $10,000 in 10 years is worth about $5,580 today; in 20 years, only $3,118.
How is this different from a future value calculation? ▾
Future value answers 'what will today's money grow to?' Present value answers 'what is tomorrow's money worth today?' They use the same factor in opposite directions, so PV and FV are exact inverses of each other for the same rate and horizon.
Does this calculator handle periodic payments? ▾
No — this calculator is for a single future lump sum. For a stream of equal periodic payments (an annuity), use the Annuity Calculator. For a lump sum plus regular contributions, use the Compound Interest Calculator.