Present Value Calculator
Determine what a future sum of money is worth in today's dollars using a discount rate.
Determine what a future sum of money is worth in today's dollars using a discount rate.
The amount you expect to receive in the future.
The rate used to discount future cash flows.
Number of years until the future value is received.
PV = present value, FV = future value, r = annual discount rate (decimal), t = years. A higher rate or longer period means the present value is a smaller fraction of the future value.
PV = FV / (1 + r)^tIf you expect to receive $10,000 in 5 years and use a 5% discount rate, the present value is about $7,835 — meaning paying more than that today would be a bad deal.
Using a 3% inflation rate, $50,000 received 10 years from now is worth only about $37,205 in today's dollars, highlighting the erosive effect of inflation.