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.
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