Present Value Calculator
PV = FV / (1 + r)^n. The current worth of a future cash flow.
Result
Present value
$4,631.93
$10,000 in 10 years discounted at 8%.
- Future value$10,000.00
- Discount factor(1 + 0.08)^10 = 2.1589
- Present value$4,631.93
- Total discount$5,368.07
Step-by-step
- Discount factor = (1 + 0.08)^10 = 2.1589.
- PV = 10000 / 2.1589 = $4,631.93.
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
Your required rate of return — usually the WACC for corporate decisions, or the risk-free rate plus a risk premium for personal decisions.
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