Present Value Calculator
Present value discounts a future lump sum back to today using a discount rate. It answers: "What is a promised $50,000 in ten years worth right now if I...
Enter values and click Calculate.
Schedule
Introduction
Present value discounts a future lump sum back to today using a discount rate. It answers: "What is a promised $50,000 in ten years worth right now if I could earn 5% elsewhere?"
Present Value Explained
Present value discounts a future lump sum back to today using a discount rate. It answers: "What is a promised $50,000 in ten years worth right now if I could earn 5% elsewhere?"
Choosing a Discount Rate
Use an opportunity cost: the return you expect on investments with similar risk. Higher discount rates reduce present value; lower rates increase it. For guaranteed payouts, use Treasury or CD yields.
Applications
- Compare lump-sum pension offers vs monthly payments.
- Value legal settlements or structured payouts.
- Evaluate whether a future bonus is worth waiting for.
- Corporate finance: rank projects by NPV using PV of cash flows.
PV and NPV
Net present value sums the present values of multiple future cash flows minus initial investment. For irregular flows, use the IRR Calculator or Finance Calculator.
Related Tools
Future Value Calculator, Bond Calculator, Annuity Calculator.
How It Works
- Enter your amounts, rates, and term in the form. Use the same units shown in the labels (dollars, years, percent).
- Click Calculate to run the Present Value Calculator engine. Invalid or empty required fields show a clear error message.
- Review the summary cards for the key outputs. Expand schedules or tables when available for period-by-period detail.
- Copy, print, or share your scenario link. Reset the form anytime to start a fresh comparison.