Fiverr
SponsoredHire freelancers for design, writing, dev, and marketing — or sell your own services. Millions of gigs at every budget.
Browse Fiverr →Present Value Calculator (PV of Future Money)
Find out what a future sum of money is worth today. Enter the future value, an annual discount rate and the number of years, and this calculator returns the present value using PV = future_value / (1 + rate/100)^years.
Enter a future value, an annual rate and the number of years to see the present value.
Related tools
How it works
What is present value?
Present value (PV) is what a future amount of money is worth today, given a discount rate. Money available now is worth more than the same amount later because it can be invested and earn returns.
The formula is PV = future_value / (1 + rate/100)^years. A higher rate or a longer time horizon both lower the present value.
Why present value matters
Present value lets you compare cash flows that arrive at different times on equal footing. It is the foundation of discounted cash flow analysis, bond pricing and investment decisions.
Use it to decide whether a future payout is worth a cost today, or to value an investment that pays off years from now.
Frequently asked questions
›What is present value?
Present value is the current worth of a future sum of money, discounted at a chosen annual rate.
›What formula does this use?
It uses PV = future_value / (1 + rate/100)^years.
›What rate should I use?
Use the return you could otherwise earn, or your cost of capital. Common choices range from 3% to 10%.
›Does a higher rate increase or decrease PV?
A higher discount rate lowers the present value, because future money is discounted more heavily.
›Can I use fractional years?
Yes. You can enter decimal years, such as 2.5, and the calculator handles it correctly.
Recommended services
DisclosureNordVPN
SponsoredStrict no-logs VPN with 6,400+ servers in 111 countries. Threat Protection blocks ads, trackers, and malware while you work online.
Get NordVPN →
This tool provides general information and estimates only — it is not financial, investment, tax, or legal advice. Verify important figures with a qualified professional before making decisions.