Present Value Calculator

PV = FV / (1 + r)^n. The current worth of a future cash flow.

Inputs

Result

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General calculation reads

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Jordan Ellenberg - math thinking
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Steven Strogatz - accessible math
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Scientific calculator (Casio fx-991EX)
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How to use this calculator

  • Enter the future cash amount.
  • Pick an annual discount rate (typically your cost of capital or required return).
  • Enter years until you receive it.

About this calculator

Present value (PV) is what a future amount is worth today, after discounting at a given rate. PV = FV / (1 + r)^n. Higher discount rate → lower PV. Higher n → lower PV. The foundational concept of finance: a dollar today is worth more than a dollar tomorrow.

Frequently asked

What discount rate should I use?+
Your required rate of return — usually the WACC for corporate decisions, or the risk-free rate plus a risk premium for personal decisions.
How is PV related to NPV?+
NPV is PV of multiple cash flows minus the initial investment. PV is the building block; NPV applies it to streams of cash flows.
Continuous vs annual compounding?+
This calculator uses annual: PV = FV / (1+r)^n. Continuous: PV = FV × e^(-rt). For r below ~10%, the difference is small.
Real vs nominal rates?+
Real rate excludes inflation; nominal includes it. Be consistent — discount nominal cash flows with nominal rates.
Common rates by use case?+
Personal: 7-10%. Corporate WACC: 8-12%. Risk-free (Treasuries): 4-5% in 2025-26. Venture capital target: 25%+.

Related calculators

Future Value Calculator
FV = PV × (1 + r)^n. What today's amount grows to over time.
Annuity Payment Calculator
PMT = P · r / (1 − (1+r)^(−n)). Payment that fully amortizes a principal over n periods at rate r.
Perpetuity Value Calculator
V = C / r — present value of an infinite stream of equal cash flows.
NPV (Net Present Value) Calculator
NPV = sum of discounted future cash flows minus initial investment. Positive NPV = accept project.
IRR (Internal Rate of Return) Calculator
IRR = the discount rate that makes NPV = 0. Solved numerically via Newton's method.
Discounted Payback Period Calculator
Years for discounted cash flows to recoup initial investment. Time-value-aware variant of payback.

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FV = PV × (1 + r)^n. What today's amount grows to over time.

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