Quick answer
Present value PV = FV ÷ (1 + r ÷ n)^(n × t). $10,000 due in 10 years discounted at 5% compounded monthly is worth $6,071.61 today, a discount of $3,928.39.
Enter the future value, annual discount rate, years and compounding. The calculator returns the present value and discount.
Related tools: Net Present Value Calculator: NPV of an initial outlay and a series of yearly cash flows. Present Value of Annuity Calculator: Present value of equal payments at the end of each period. Future Value of Annuity Calculator: Future value of equal payments at the end of each period.
How to use the Present Value Calculator
- Enter future value ($) (0 or more).
- Enter annual discount rate (%) (between 0 and 100).
- Enter years (between 0 and 100).
- Choose compounding: Monthly, Annually, Semi-annually, Quarterly, Daily and Weekly.
- Press Calculate to see the result, and use Reset to start again.
| Input | What to enter | Allowed values |
|---|---|---|
| Future value | A number, in $ | ≥ 0 |
| Annual discount rate | A number, in % | ≥ 0, ≤ 100 |
| Years | A number | > 0, ≤ 100 |
| Compounding | Choose one: Monthly; Annually; Semi-annually; Quarterly; Daily; Weekly | Starts at Monthly |
Formula and method
Formula
PV = FV ÷ (1 + r ÷ n)^(n × t)
IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice.
Discounts a single future amount back to today.
Worked examples
These examples are verified: each one is an automated test case that the live calculator must reproduce exactly.
Example 1
Inputs: Future value = 10000; Annual discount rate = 5; Years = 10; Compounding = Monthly.
| Result | Value |
|---|---|
| Present value | $6,071.61 |
| Discount | $3,928.39 |
Example 2
Inputs: Future value = 25000; Annual discount rate = 6; Years = 5; Compounding = Annually.
| Result | Value |
|---|---|
| Present value | $18,681.45 |
| Discount | $6,318.55 |
Example 3
Inputs: Future value = 1000; Annual discount rate = 0; Years = 5; Compounding = Quarterly.
| Result | Value |
|---|---|
| Present value | $1,000.00 |
| Discount | $0.00 |
The first line is the headline result (present value). Below it the present Value Calculator lists discount, which describe the same case from other angles. IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice.
Time value of money
A dollar today is worth more than a dollar later because it can earn interest. With annual compounding the same 5% would give $6,139.13; monthly compounding discounts slightly more. A 0% rate gives PV = FV.
Uses
Use PV to compare payments at different times, value a lump sum or work out how much to invest now to reach a target. The discount rate is the key assumption.
How the result changes with future value
Holding every other input at the first worked example, this table changes only future value. It shows how sensitive the answer is to that one value; each row was produced by running this calculator.
| Future value | Present value | Discount |
|---|---|---|
| 5000 | $3,035.81 | $1,964.19 |
| 10000 | $6,071.61 | $3,928.39 |
| 20000 | $12,143.22 | $7,856.78 |
| 40000 | $24,286.44 | $15,713.56 |
What happens with invalid input
These messages are produced by the calculator itself, so you know what to fix.
- Annual discount rate: entering "-1" shows "Annual discount rate must be at least 0." beside that field and no result.
- Years: entering "0" shows "Years must be greater than 0." beside that field and no result.
Choosing between the Present Value Calculator and similar calculators
Each row shows what a related calculator on this site asks for and what it returns, so you can pick the one that matches your question.
| Calculator | You enter | It returns |
|---|---|---|
| [Net Present Value Calculator](/finance/net-present-value-calculator/) | discount rate, initial investment and cash flows | Net present value |
| [Present Value of Annuity Calculator](/finance/present-value-of-annuity/) | payment per period, rate per period and number of periods | Present value |
| [Future Value of Annuity Calculator](/finance/future-value-of-annuity/) | payment per period, rate per period and number of periods | Future value |
| [Investment Calculator](/finance/investment-calculator/) | initial amount, annual interest rate and years | Projected value |
| [Financial Calculator](/finance/financial-calculator/) | solve for, periods per year and payments | Future value (FV) |
Background: interest, saving and investing
A nominal rate (APR) does not include the effect of compounding; the annual percentage yield (APY) does: APY = (1 + r/n)^n − 1. A 5% nominal rate compounded annually is 5.000%, semi-annually about 5.063%, quarterly about 5.095% and monthly about 5.116%, so more frequent compounding helps, but with diminishing returns.
The rate you enter in a projection is an assumption, not a promise: real returns vary and can be negative. Fees and taxes are not modelled unless the page says so.
Assumptions and limitations
- 0% rate gives PV = FV
Results are estimates for planning, not financial advice. Lender terms, fees, taxes and rounding rules can change real figures, so confirm important numbers with your lender or a licensed adviser.
If a required value is empty, not a number, or outside its allowed range, the form marks that field with a message and shows no result instead of a misleading number. The automated checks deliberately try invalid entries for annual discount rate and years to confirm this.
Frequently asked questions
What is the difference between PV and FV?
PV is today's value, FV the value at a future date.
Does a higher rate lower PV?
Yes. A higher discount rate shrinks present value: $10,000 in 10 years is $6,071.61 at 5% but only $3,716 at 10%.
How do I solve for the amount to invest?
Use the PV of your target.
What does the Present Value Calculator calculate?
Today's value of a future amount at a given discount rate. It returns Present value and Discount.
What formula does the Present Value Calculator use?
PV = FV ÷ (1 + r ÷ n)^(n × t). Discounts a single future amount back to today.
What do I need to enter in the present Value Calculator?
You enter Future value ($), Annual discount rate (%), Years and Compounding.
How is the result rounded or limited?
IEEE-754 double precision; money shown to cents, rates to 4 decimals. Results are estimates, not financial advice. 0% rate gives PV = FV.
What does the “Compounding” option change?
It sets how the present Value is worked out. The choices are Monthly, Annually, Semi-annually, Quarterly, Daily and Weekly.
What is an example of a present Value result?
With future value 10000, annual discount rate 5, years 10 and compounding Monthly, the present value is $6,071.61.
Can I rely on this calculator for a decision?
Results are estimates for planning, not financial advice. Lender terms, fees, taxes and rounding rules can change real figures, so confirm important numbers with your lender or a licensed adviser. For this calculator in particular: 0% rate gives PV = FV.
Related calculators
- Net Present Value Calculator — NPV of an initial outlay and a series of yearly cash flows.
- Present Value of Annuity Calculator — Present value of equal payments at the end of each period.
- Future Value of Annuity Calculator — Future value of equal payments at the end of each period.
- Investment Calculator — Project investment growth from a rate of return you choose.
- Financial Calculator — Time-value-of-money solver for N, rate, present value, payment or future value.
- IRR Calculator — Internal rate of return of an investment from its yearly cash flows.
Sources
- Standard time-value-of-money relations (e.g. Brealey, Myers & Allen, Principles of Corporate Finance)
Content last reviewed 2026-11-04. Formulas and worked examples are checked by automated tests against independently computed values.