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Present Value Calculator
Find out what future money is worth today. Enter a future lump sum, optional repeating payments and a discount rate to see the present value, plus a chart of how each future dollar shrinks over time.
Written by TopicDrill Editorial Team·Updated June 2026
How a future dollar loses value
Worth of $1 today
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How the present value calculator works
Present value rests on a simple truth: money has a time cost. A dollar you receive in ten years is worth less than a dollar today, because today's dollar can be put to work and grow. The tool discounts your future lump sum and any repeating payments back to the present at the rate you choose, then adds the two pieces together.
The chart plots the discount factor, which is what a single future dollar is worth in today's terms. It starts at one and curves downward, so you can see how value drains away the further a payment sits in the future.
A worked example
Suppose you are promised $100,000 in 15 years and you could otherwise earn 6% a year. The present value is about $41,700. In other words, setting aside roughly $41,700 today at 6% would grow into that $100,000 promise, so paying more than that for the promise would leave you worse off.
Things to keep in mind
The discount rate is the single most important input, and it should reflect the risk and opportunity cost of the money. Higher risk usually calls for a higher rate, which lowers the present value. For background on the time value of money, the SEC's Investor.gov is a neutral reference. To run the same idea in reverse and grow money forward, use our future value calculator.
Frequently asked questions
What is present value?
Present value is what a future sum of money is worth in today's dollars. Because money you hold now can be invested to earn a return, a dollar arriving years from now is worth less than a dollar in hand today. Present value converts the future amount back to that lower figure.
What is the present value formula?
For a single future amount, PV equals FV divided by one plus the rate, raised to the number of periods. For a stream of equal payments it is the payment times one minus one plus the rate raised to the negative number of periods, divided by the rate. This tool adds both and discounts period by period.
What discount rate should I use?
Use the return you could reasonably earn on a similar-risk alternative, often called the opportunity cost of capital. A higher discount rate makes future money worth less today, while a lower rate makes it worth more. Small changes in the rate can move the result a lot over long horizons.
How is present value the opposite of future value?
Future value grows today's money forward in time at a rate, while present value discounts a future amount back to today at the same rate. If you know one figure, the rate and the time, you can always solve for the other.
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