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  4. Present Value Calculator

Present Value Calculator

Discount a future lump sum, or a series of deposits, back to what it is worth today.

Interest & savings

  • Compound Interest Calculator
  • Simple Interest Calculator
  • Present Value Calculator
  • Future Value Calculator
  • Savings Calculator

How it works

Present value is today’s worth of money you will receive later, after compound interest. A series of deposits is an annuity; each payment is discounted from the period it is made.

PV = FV / (1 + i)^N

When to use

Use this tool when you need to: {future} in 10 periods at 6% per period is worth {present} today.

How to use this tool

  1. Enter your values in the fields above.
  2. Review the formula and any mode options for your problem.
  3. Read the result and the step-by-step solution.

{future} in 10 periods at 6% per period is worth {present} today.

Frequently asked questions

What is the Present Value Calculator?
Present value is today’s worth of money you will receive later, after compound interest. A series of deposits is an annuity; each payment is discounted from the period it is made.
How do I use the Present Value Calculator?
Enter the required values, then calculate. The Present Value Calculator shows results, formulas, and step-by-step work when available. No account is required.
What formula does the Present Value Calculator use?
PV = FV / (1 + i)^N

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  • Future Value CalculatorGrow a starting amount plus periodic deposits with compound interest per period.→
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Present Value Calculator

Discount one future amount. I/Y is the rate for each period, so monthly compounding means N is months and I/Y is the monthly rate.

Try an example

How it works

Present value of future money

Present value is what a future amount is worth today if it can earn compound interest. Divide the future value by (1 + i) once per period. The difference between the future amount and today’s value is the interest that would have accrued. $1,000 due in 10 periods at 6% per period is $558.39 today.

Present value of deposits

A level deposit each period is an annuity. End-of-period payments use PV = PMT × [1 − (1 + i)^(−N)] / i. Beginning-of-period payments earn one extra period of interest, so both present and future value are multiplied by (1 + i). The schedule grows the deposits forward; present value is that stream discounted to today.

PV and net present value

PV is the discounted worth of inflows alone. Net present value (NPV) subtracts outflows — the cost of an investment — from that figure. A positive NPV means the project earns more than the chosen discount rate. This calculator does not net costs; enter only the future amount or the deposit series.

The time value of money

Loans, mortgages, and savings all rest on trading money now for money later. N is the count of compounding periods, not automatically years — 10 years of monthly compounding is N = 120. To grow a lump sum instead of discounting it, use the Future Value calculator.