Present Value Calculator
What a future sum is worth today, discounted at a given rate.
Discounting the future
Present value is the mirror image of future value: it tells you what a future cashflow is worth in today’s money. It underpins bond pricing, DCF valuation, and every "should I take the lump sum or instalments" decision.
The formula
PV = FV ÷ (1 + r)ⁿ, where r is the discount rate — the return you could earn elsewhere.
Frequently asked questions
What is the discount rate?
It reflects the opportunity cost of capital — the return you forgo by not having the money now. Higher discount rates make future money worth less today.