Present Value Calculator
Determine what a future sum of money is worth in today's dollars using a discount rate.
Before you calculate
The discount rate represents your chosen opportunity cost. A present value is not a market price or a promised return.
Present Value Formula
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)^tExample Scenarios
Investment Decision
If 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.
Inflation Adjustment
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.
Sources & calculation notes
Maintained by MoneyCalc. Results are estimates based on the inputs and assumptions shown, not personalized financial advice or a lender quote. Default rates are examples unless a specific tax year or official table is identified.
References explain the underlying concepts or rules. They do not endorse or independently certify this implementation.
Calculations run in your browser. Some tools retain settings on this device. Displayed rounding can produce small differences from a statement or contract.