Calculate the present value of a future sum or a series of future cash flows using your discount rate. Essential for investment analysis and comparing money across time.
PV Inputs
$
$
% per year
Present Value
—
—
Discount (Time Value)
—
Present Value
—
Future Amount
—
Discount Rate
—
Discount Factor
—
Present Value Today
—
Future Value / Total Payments
—
Discount %
—
Years
—
Discount Rate
—
Effective Annual Rate
—
FAQ
What is present value?
Present value is the current worth of a future amount, discounted at your required rate of return. $100,000 ten years from now is worth less than $100,000 today because today's money can be invested to grow.
How is PV calculated?
PV = FV / (1 + r)^n for a lump sum. For an annuity: PV = PMT × [1 − (1+r)^-n] / r. Where r = period rate and n = number of periods.
What discount rate should I use?
Use your opportunity cost of capital — the return you could earn on an equivalent risk investment. Common choices: 6-8% for stock market returns, 3-5% for bonds, 10%+ for business investments.
What is the difference between PV and NPV?
PV discounts a single future amount or annuity to today. NPV (Net Present Value) discounts all cash inflows and outflows of an investment project and subtracts the initial investment. NPV > 0 means value is created.