Present Value Calculator
Enter a future value, a discount rate, and the period — in years, months, days, or exact dates — to see what that money is worth in today’s dollars.
Discount a future sum
The amount you expect to receive later, up to $1 trillion.
The annual rate used to discount, from -50% through 100%.
Decimals allowed, such as 2.5, from 0 through 200 years.
$10,000.00 received in 10 years is worth this much today at the discount rate.
- Future value
- $10,000.00
- Discount rate
- 6%
How present value is calculated
Present value answers what a future sum is worth today, given a discount rate that reflects the time value of money. Because a dollar in the future is worth less than a dollar now, the future value is divided by a growth factor over the number of years.
PV = FV / (1 + r)Years- PV
- Present value, in today’s dollars
- FV
- Future value you expect to receive
- r
- Annual discount rate, as a decimal
- Years
- Time until the sum is received
$10,000 in 10 years at a 6% discount rate
A $10,000 payment expected in 10 years, discounted at 6% per year, is worth $10,000 / (1.06)10 = $5,583.95 today. In other words, investing $5,583.95 now at 6% would grow to about $10,000 in a decade.
This is an educational calculation based only on the values you provide, and it is not financial advice.
What this calculator assumes
- A single future sum, discounted annually.
- The discount rate stays constant over the period.
- No inflation adjustment, fees, or taxes are modeled.
- Money values are rounded to the nearest cent for display.
Present value FAQ
Can I enter the period in months, days, or exact dates?
Yes. Use the unit switch on the Years until received field to type the period in years, months, or days — or pick start and end dates from the calendar. Every option is converted to an exact year count (365.25 days per year) before the math runs, so all four give the same answer.
What discount rate should I use?
A common choice is your expected rate of return or the interest rate on a comparable, low-risk investment. A higher discount rate lowers the present value.
How is this different from future value?
Present value discounts a future amount back to today. Future value does the opposite — it grows a present amount forward in time at a given rate.
Sources and review notes
- U.S. Securities and Exchange Commission, Investor.gov — time value of money
- Financial Consumer Agency of Canada (canada.ca) — savings and investments
Methodology last checked Jul 14, 2026. Formula implementation is covered by deterministic unit tests. No financial professional review is claimed yet.