Present Value Calculator
Work out what a future amount of money is worth today. Discount a single lump sum, a series of equal payments, or any set of cash flows, using whatever discount rate and compounding frequency you need.
The three modes
A lump sum is discounted by dividing by one plus the rate raised to the number of periods. An annuity discounts each payment and adds them, which collapses into a single formula. The cash-flow mode handles anything irregular by discounting each period separately and summing.
- Single future sum
- Level annuity (ordinary or annuity due)
- Arbitrary series of cash flows
- Annual, semi-annual, quarterly or monthly compounding
- Discount-factor table for every period
Why a pound today beats a pound tomorrow
Money available now can be invested, so it is worth more than the same amount received later. The discount rate is the return you could otherwise earn, and it is the rate used to pull future cash flows back to the present. A higher rate means future money is worth less today.
Related Calculators
You might also need
Tools from other categories that people pair with the Present Value: