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Present Value (PV) Calculator

Find out what money you'll receive in the future is worth today. Enter the future value, discount rate (annual), and number of years to get the present value (PV) instantly. Choose a compounding frequency too (annual, semiannual, quarterly, or monthly).

Input

$
%
yr
Compounding frequency

Result

Present value (PV) / discount rate 3% over 10 years

$744,093.91

Discount factor 0.744094

Future value

$1,000,000.00

Discount amount

$255,906.09

Discount rate (annual)

3 %

How it works

  • Present value (PV) is found with "future value ÷ (1 + discount rate)^years". It is the amount you get when future money is discounted back to today's value.
  • Enter the discount rate as an annual percentage. The higher the discount rate and the longer the time horizon, the more the future value is discounted and the smaller the present value becomes.
  • When you choose a compounding frequency, the rate per period is "annual rate ÷ compounding count" and the total number of periods is "years × compounding count", so present value = future value ÷ (1 + annual rate / m)^(m × years), where m is the number of compounding periods per year.
  • The discount amount is "future value − present value", a measure of the value lost over time (the time value of money).
  • The discount factor equals "present value ÷ future value" and is shown to six decimal places. It tells you how much one unit of future money is worth today.
  • Note: results are approximate. Real-world valuations of investments, insurance, or pensions vary with the applicable rate, taxes, fees, and the timing of cash flows. Consult a professional for important decisions.