Present Value Calculator
Discount a future sum back to what it's worth today.
Present value
$55,839
PV = FV ÷ (1 + r)ⁿ
Discount applied
44.2%
Why money later is worth less
A dollar today can be invested; a dollar in 10 years can't earn those 10 years of returns. Discounting reverses compounding: $100,000 a decade out is worth about $55,800 today at a 6% rate. The higher the rate or the longer the wait, the deeper the discount.
Choosing the discount rate
Use your opportunity cost: what the money would earn elsewhere at similar risk. Safe cash flows discount near treasury yields; risky ones deserve equity-like rates of 7–10%. This one choice drives most valuation disagreements.
Frequently asked questions
- How does the Present Value Calculator work?
- Discount a future sum back to what it's worth today.
- Is the Present Value Calculator free to use?
- Yes. The Present Value Calculator is completely free, runs entirely in your browser, and requires no account or sign-up. Your inputs never leave your device.
Related calculators
Mortgage Calculator
Estimate your monthly mortgage payment with taxes, insurance, and a full amortization schedule.
Loan Calculator
Work out payments, total interest, and payoff time for any fixed-rate loan.
Compound Interest Calculator
See how savings and investments grow with compounding over time.
Auto Loan Calculator
Estimate car payments including trade-in value, sales tax, and dealer fees.