Present Value Calculator
Determine what a future sum is worth today by discounting it at a given rate. Essential for evaluating investments and comparing cash flows.
$
$
Present Value
Enter values to calculate
How to Use the Present Value Calculator
1
Enter the future value.
2
Enter the annual rate and number of years.
3
View the present value.
Frequently Asked Questions
What is present value?
The current worth of a future amount, discounted at a specific rate. PV = FV / (1 + r/100)^n.
Why is present value important?
A dollar today is worth more than a dollar tomorrow due to earning potential. PV quantifies this.
What discount rate should I use?
Use your required rate of return, cost of capital, or expected inflation rate depending on context.