Present value calculator
Find today’s equivalent of one future cash amount.
Formula
Present value = future amount / (1 + annual rate/100)^years
Present value ≈ (20,000)÷(1+(5)÷100)^(1) · Discount amount ≈ (20,000)-(19,047.61905)
How to use
- Enter the future amount.
- Enter an effective annual discount rate and years.
- Read present value and the discount amount.
Examples
- 20,000 due in 1 year at 5% is worth about 19,047.62 today.
- 1,210 due in 2 years at 10% is worth 1,000 today.
Frequently asked questions
Which rate should I enter?
Use an effective annual discount rate for the scenario, not a nominal monthly rate.
Does this handle several payments?
No. Discount each payment for its own timing and add the present values.
Does this guarantee an investment return?
No. The rate is an assumption for comparing amounts at different times.
Sources
Updated: