Present Value Calculator
Discount a future sum back to what it is worth today, using a discount rate and number of years, the core of the time value of money.
- Free
- No sign-up
Enter a future value, rate and years to see present value.
Worked example
With these example inputs:
- Future value$50,000
- Discount rate6%
- Number of years10 yr
Present value: $27,920
- Discount amount$22,080
Frequently asked questions
What is present value?
Present value is what a future sum of money is worth today, given a rate of return. Because money can earn interest, a dollar tomorrow is worth less than a dollar now.
What discount rate should I use?
Use the return you could earn elsewhere or your cost of capital. A higher rate discounts the future more steeply, lowering today's value.