⏮️ Present Value Calculator
A dollar in the future is worth less than a dollar today because today's dollar can be invested. Present value tells you how much a future sum is worth now.
How the Present Value Calculator works
The future amount is divided by the growth factor for the number of years, using your discount rate (an expected return or interest rate).
Step-by-step calculation
- 1Enter the future amount.
- 2Enter a discount rate and years.
- 3Divide by the growth factor.
Worked example
$10,000 received in 10 years at a 5% discount rate is worth 10,000 ÷ 1.05¹⁰ = $6,139.13 today.
Present Value Calculator examples
| Future amount ($) | Present value |
|---|---|
| 5,000 | $3,069.57 |
| 7,500 | $4,604.35 |
| 10,000 | $6,139.13 |
| 12,500 | $7,673.92 |
| 15,000 | $9,208.70 |
Other inputs kept at the calculator's default values. Results calculated by this calculator.
Why use a Present Value Calculator?
Compare money received at different times — settlements, offers or investments.
Important factors that can affect your results
- The discount rate you choose changes the answer a lot.
- Inflation.
- Risk of not receiving the money.
Frequently asked questions
What discount rate should I use?
Use the return you could realistically earn elsewhere with similar risk, such as a savings or bond rate.
Is this the same as inflation adjustment?
Similar math. Use the inflation rate as the discount rate to see value in today's buying power.
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Last reviewed November 2026 · How we build and check our tools · Report a problem