Free Present Value Calculator
Calculate the present value of a future sum of money. Determine what future cash flows are worth in today's dollars using a discount rate.
USD
%
years
Present Value
$61,391.33
Discount Amount$38,608.67
Discount Factor0.6139
Present Value vs Number of Years
How to Calculate Present Value
Present value determines what a future amount of money is worth today, given a specified discount rate.
Formula
PV = FV / (1 + r)^n
Where:
Example Calculation
You will receive $100,000 in 10 years. What is it worth today at a 5% discount rate?
- 01PV = $100,000 / (1 + 0.05)^10
- 02PV = $100,000 / (1.05)^10
- 03PV = $100,000 / 1.6289
- 04Present Value = $61,391.33
- 05Discount amount: $100,000 - $61,391.33 = $38,608.67
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