How to use the Present Value Calculator
The present value calculator tells you what a future amount is worth today at a given discount rate.
Open the Present Value Calculator →
What you need to enter
- Future value ($)
- Discount rate (% / year)
- Years
- Compounds per year
The formula
PV = FV ÷ (1 + r ÷ n)^(n × t).
Worked example
Using the default values in the calculator:
- Future value ($): 20000
- Discount rate (% / year): 5
- Years: 10
- Compounds per year: 1
| Present value | $12,278.27 |
| Discount | $7,721.73 |
Tips for better results
- A higher discount rate lowers present value.
- Match the compounding to your rate.
Common mistakes to avoid
- Using too low a discount rate.
- Confusing present value with future value.
Please note: Calculators and guides give general estimates, not financial, tax or investment advice. Real offers depend on your lender, location and personal situation. See our Disclaimer.