Present Value Calculator
Calculate the present value of a future lump sum and optional periodic payments using a chosen discount rate.
Reviewed by the CalcCafe editorial team · Last updated 1 July 2026 · How we test our tools
Example
You will receive $10,000 in 10 years and also get $100 at the end of each year, with a discount rate of 5% per year.
PV of the lump sum = 10,000 / (1.05)10 = $6,139.13. PV of the payments = 100 × (1 − 1.05−10) / 0.05 = $772.17. Total present value = $6,911.30.
How it works
Enter the future value, discount rate per period, number of periods, and any recurring payment. The tool discounts each component back to today with PV = FV / (1+r)^n and adds the present value of the payment annuity.
Good to know
The Present Value Calculator tells you how much a sum of money you will receive in the future is worth in today's dollars, once you account for the return you could otherwise earn on that money. It handles two pieces at once: a single future lump sum and a stream of equal recurring payments, discounting each back to the present and adding them together. It is built for anyone weighing a delayed payout against cash in hand today, comparing a lump-sum offer to an installment plan, valuing a bond or pension, or sanity-checking an investment's expected return.
Reach for it whenever timing changes the value of money. Typical cases include deciding between a lottery or settlement lump sum versus annual payments, estimating what a future bonus or maturity payout is really worth now, or pricing a series of expected cash flows at your own required rate of return. The key input is the discount rate per period, which represents your opportunity cost or hurdle rate; match it to the period length you enter, so use a monthly rate with monthly periods and an annual rate with annual periods.
The headline figure is the present value today, broken into the PV of the future value and the PV of the payments so you can see which part drives the total. Two more lines help you interpret it: "Future total nominal" sums the raw dollars before discounting, and "Discount applied" is the gap between that nominal total and the present value, showing how much the time value of money shaves off. The bar chart compares the lump-sum and payment portions visually. As a rule, a higher rate or more periods produces a lower present value.
One practical caveat: results swing sharply with the discount rate, so test a few rates rather than trusting a single number. Also confirm whether your payments arrive at the end or start of each period, since the End and Begin toggle changes every payment's discounting and produces different totals. Everything runs in your browser, and the figures are educational estimates rather than financial advice.
Frequently asked questions
What discount rate should I use?
Use a rate that reflects your required return or opportunity cost, matched to the period. For monthly periods enter the monthly rate (annual rate divided by 12); for annual periods enter the annual rate directly.
What is the difference between End and Begin timing?
End (ordinary annuity) assumes each payment arrives at the end of the period. Begin (annuity-due) assumes payments arrive at the start, so each is discounted one period less, multiplying the payment present value by (1+r) and giving a slightly higher total.
Is my data uploaded anywhere?
No — this calculator runs entirely in your browser; nothing is uploaded.
Is this financial advice?
No. These are educational estimates — consult a qualified financial professional before making decisions.
People also ask
What is present value in simple terms?
Present value is what a future amount of money is worth right now, after accounting for the fact that money available today could be invested to earn a return. Because of that earning potential, a dollar received later is worth less than a dollar received today.
What is the formula for present value?
For a single future amount the formula is PV = FV / (1 + r)^n, where FV is the future value, r is the rate per period, and n is the number of periods. For a stream of equal payments, the present value of an annuity is PMT × (1 − (1 + r)^−n) / r, and the two can be added together.
What is the difference between present value and future value?
Future value is what an amount today will grow to after earning a rate of return over time, while present value works in reverse, finding what a future amount is worth today by discounting it. They use the same rate and number of periods but move in opposite directions.
Does a higher discount rate increase or decrease present value?
A higher discount rate decreases present value, because more potential return is being subtracted for each period of waiting. A lower rate leaves more of the future amount intact, producing a higher present value.
How do I calculate present value for monthly cash flows?
Convert the annual rate to a per-period rate by dividing it by 12, and set the number of periods to the number of months. The rate and the period count must always refer to the same time unit for the result to be correct.
What is the present value of an annuity?
It is the combined present value today of a series of equal payments made over a set number of periods, each one discounted back by the rate. Earlier payments are worth more than later ones because they are discounted over fewer periods.
Can present value be used to decide between a lump sum and payments?
Yes. You can compute the present value of each option at the same discount rate and compare the totals, which puts both choices in today's dollars on equal footing. The result depends heavily on the rate you choose, so it is an estimate rather than a definitive answer.
What is the present value of $100,000 interest 12% for 20 years?
The present value of $100,000 received in 20 years at a 12% discount rate is 100,000 ÷ 1.12^20 = $10,366.68. In other words, about $10,367 invested today at 12% would grow to $100,000 in 20 years. The high rate and long horizon shrink the value sharply; at 5% the same $100,000 would be worth about $37,689 today.
How to calculate PV at 10%?
Divide the future amount by 1.10 raised to the number of years: PV = FV ÷ 1.10^n. For $1,000 in 5 years, that is 1,000 ÷ 1.10^5 = 1,000 ÷ 1.61051 = $620.92. For a series of equal yearly payments, use PV = C × (1 − 1.10^-n) ÷ 0.10, so $100 a year for 5 years is 100 × (1 − 0.62092) ÷ 0.10 = $379.08. Enter 10 as the rate and the same period count in the calculator to get both.
What is the present value of $100 in 8 years if the interest rate is 5%?
The present value is 100 ÷ 1.05^8 = 100 ÷ 1.47746 = $67.68. That means $67.68 invested today at 5% would grow to $100 in 8 years, so the two are financially equivalent. A higher rate or a longer wait would make the present value smaller.
What does PV of $1 mean?
The present value of $1 is the amount you would need today to have exactly $1 at a future date, given a discount rate. It is calculated as 1 ÷ (1 + r)^n; at 5% for 8 years it is 0.6768, meaning every future dollar is worth about 68 cents today. PV-of-$1 tables list these factors so you can multiply any future amount by the factor instead of recalculating, which is exactly what this calculator does.
How do you calculate NPV for dummies?
Net present value adds up the present value of every future cash flow and subtracts what you pay today. Discount each future amount with PV = amount ÷ (1 + r)^n, where r is your required return and n is the year it arrives, sum those values, then subtract the initial cost. If the NPV is positive, the project earns more than your required rate; if negative, it earns less. For example, paying $900 today for $500 in year 1 and $500 in year 2 at 10% gives 454.55 + 413.22 − 900 = −$32.23, so it falls short.
How much is $100 at 10% interest at the end of each year forever worth today?
A payment of $100 at the end of every year forever, discounted at 10%, is worth 100 ÷ 0.10 = $1,000 today. This is the perpetuity formula PV = C ÷ r: $1,000 invested at 10% produces exactly $100 a year without ever touching the principal. If the payments grew by a fixed percentage g each year, the value would be C ÷ (r − g).
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Sources & references
These tools follow our methodology and provide educational estimates only — verify important figures with a qualified professional.