Present Value Calculator
Calculate what a future amount is worth today using a discount rate.
How this calculator works
How to use this calculator
1. Enter the future amount.
2. Enter the annual discount rate.
3. Enter the number of years.
4. Click Calculate Present Value to estimate the equivalent value today.
Formula used
Present Value = Future Value ÷ (1 + r)^t
where:
r = annual discount rate as a decimal
t = number of years
Example calculation
Example: $15,000 received in 4 years with a 5% discount rate
Present Value = 15,000 ÷ (1.05)^4
Present Value ≈ $12,340.54
What the result means
The result estimates what a future amount is worth today under the discount rate you entered. A higher discount rate generally produces a lower present value.
Frequently asked questions
What is a discount rate?
It is the annual rate used to translate a future amount into an equivalent present value.
Is present value the same as future value?
No. Present value discounts a future amount back to today, while future value grows a present amount forward.
Does this include cash flows received along the way?
No. This calculator discounts one future amount.