Present Value Calculator

Calculate the value today of a future lump sum or a stream of payments using discount rate, time, and compounding.

How to Use

  1. Select Lump Sum or Annuity.
  2. Enter the future value or recurring payment amount.
  3. Enter the annual discount rate and time period.
  4. Choose compounding and, for annuities, payment timing.
  5. Review the present value result and open Show Work for the formula steps.
Discounted Cash Flow

Value Today Snapshot

Compare future cash flows against today's value using deterministic browser-side calculations.

Present Value
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Future Value
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Discount
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Periods
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Inputs & Settings
Switch between lump sum and annuity modes. Results update client-side.
Total amount to be received in the future.
Enter the annual rate before compounding is applied.
Can be whole or fractional years.
Used for discounting the future amount or payment stream.
Show Work (step-by-step)
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Work is shown using the selected mode, rate, compounding method, and payment timing.

Present Value Formulas

Quick answer: Present value discounts future cash flows back to what they are worth today.

  • Lump Sum: PV = FV / (1 + r / n)^(n × t)
  • Continuous Compounding: PV = FV / e^(r × t)
  • Ordinary Annuity: PV = PMT × [1 − (1 + r / n)^(-n × t)] / (r / n)
  • Annuity Due: Ordinary annuity PV × (1 + r / n)
Where PV = present value, FV = future value, PMT = payment amount, r = annual rate, n = periods per year, and t = years.

FAQ

What is present value?

Present value is the amount a future cash flow is worth today after applying a discount rate.

What discount rate should I use?

That depends on your use case. Common choices include expected investment return, borrowing cost, inflation-adjusted target return, or required rate of return.

What is the difference between lump sum and annuity mode?

Lump sum mode discounts one future amount. Annuity mode discounts a stream of equal recurring payments.

What is an annuity due?

An annuity due assumes payments happen at the beginning of each period instead of the end, making the present value slightly higher.

Tool Info

Last updated:

Updates may include UI refinements, additional finance options, and edge-case validation improvements.