Present Value Calculator
Present value answers a core finance question: how much is a future sum of money worth to you today. Because money can earn a return, a dollar received years from now is worth less than a dollar in hand, and present value discounts that future amount back using a chosen discount rate. This calculator takes a future value, an annual discount rate, and the number of years or periods, and applies the standard present value formula to show what that future payoff is worth right now. It also displays the total discount, the gap between the future amount and its present value. Use it to compare offers paid at different times, value a future windfall, or decide whether a delayed payment is worth waiting for. Everything is computed in your browser.
How to use Present Value Calculator
- Enter the future amount you expect to receive.
- Set the discount rate and number of periods.
- Read the present value it is worth today.
Frequently asked questions
What is present value?
It is what a future amount of money is worth today, discounted back using a rate to reflect the time value of money.
How does the discount rate affect the result?
A higher discount rate lowers the present value, since money farther in the future is worth less today at a steeper rate.
Why does money in the future count for less?
Because a dollar today can be invested to grow, a future dollar must be discounted to compare it fairly to money now.
What is Present Value Calculator?
Present value answers a core finance question: how much is a future sum of money worth to you today. Because money can earn a return, a dollar received years from now is worth less than a dollar in hand, and present value discounts that future amount back using a chosen discount rate.
Is Present Value Calculator free to use?
Yes. Present Value Calculator is completely free, with no sign-up and no usage limits.
Does Present Value Calculator work in a web browser?
Yes. Present Value Calculator runs in any modern web browser. There is nothing to download or install.
Is my data private with Present Value Calculator?
Yes. Present Value Calculator runs entirely on your device in your browser, so nothing you enter is uploaded to a server.
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