Present Value Calculator
The present value calculator converts future money to today's dollars. Enter the amount you expect to receive (or pay) in the future, the discount rate (your required rate of return or interest rate), and the number of years until that future date. The calculator shows what that future amount is worth in today's dollars, accounting for the time value of money.
Present value formula
PV = FV / (1 + r)^n
where FV = future amount, r = discount rate (decimal), n = number of years
The discount rate is divided into 1 and raised to the power of years, which reduces the future value to its present equivalent.
How to use this calculator
- Enter the amount you expect to receive (or owe) in the future in the "Future amount" field.
- Enter your discount rate (your required rate of return or market interest rate) in the "Discount rate" field.
- Enter the number of years until that cash flow in the "Number of years" field.
- The calculator shows the present value in today's dollars and the total discount.
Understanding your results
Present value is what a future amount is worth today. If you could choose between receiving the present value today or the future amount in the future, both should be equally valuable (assuming the discount rate is correct).
Discount amount is the difference between the future amount and the present value. It represents the interest (or opportunity cost) that accounts for the passage of time.
Present value calculator: frequently asked questions
What is present value?
Present value is the worth today of a sum of money to be received (or paid) in the future. It accounts for the time value of money: a dollar today is worth more than a dollar tomorrow because today's dollar can earn interest.
How is present value used?
Present value helps investors compare investment opportunities, value bonds, evaluate business projects, and make financial decisions. It answers: how much should I pay today for a future cash flow?
What is the discount rate?
The discount rate is the interest rate used to convert future money to present value. It reflects the expected return you could earn elsewhere, or your required rate of return for a given investment.
Can I calculate the present value of multiple cash flows?
This basic calculator handles a single future amount. For multiple cash flows at different times, see the NPV calculator, which sums the present value of each individual cash flow.
What if the discount rate is zero?
If the discount rate is zero, the present value equals the future amount. A zero rate means no time value of money, which is unrealistic but mathematically valid.
Official sources
- U.S. Securities and Exchange Commission: Time Value of Money.
Reviewed by the CalculatorHub team, edited by James Graham, 14 June 2026. See our methodology.