Present Value Calculator
What is a future payment really worth today? This free calculator discounts a single future amount — or a series of future payments — back to its present value, so you can compare investments, loans and lump sums on equal terms.
How to use
- Fill in the fields above with your own figures — results update live as you type.
- For a single amount, present value is the future amount divided by (1 + rate) raised to the periods. For a series, the annuity formula is used.
- Check the result box and adjust any rate or parameter to test other cases.
Tips
- A higher discount rate shrinks present value fast — test a few rates to see the range.
- Compare offers with the same rate and timing, or the comparison means nothing.
- For annuities, check whether payments are at the start or end of each period — it changes the answer.
Note: Uses standard time value of money formulas. The discount rate is your own assumption.
Frequently Asked Questions (FAQ)
What is present value?
The worth today of money you will receive in the future, reduced by a discount rate that reflects time and risk.
Can it handle a series of payments?
Yes. Choose the payment-per-period mode to value an annuity, or the lump-sum mode for a single future amount.
What inputs are needed?
The future amount or payment per period, the discount rate per period and the number of periods.
Why does changing the rate change the answer so much?
A higher discount rate shrinks present value fast, so test a few rates to see the range. Always compare offers with the same rate and timing, or the comparison means nothing.