Present Value Calculator (PV)
The Present Value Calculator answers a fundamental finance question: what is a future sum of money worth today? Because money today can be invested to grow, a dollar today is worth more than a dollar in the future. By discounting a future value at a given rate, you can compare options on equal footing — whether evaluating an investment, a lump sum payout, or the value of future cash flows.
How to Use This Calculator
- 1
Enter the future value — the amount you'll receive in the future.
- 2
Enter the discount rate (your required rate of return or interest rate).
- 3
Enter the number of periods (typically years) until you receive the money.
- 4
Click Calculate to see what that future sum is worth today.
Frequently Asked Questions
Present Value (PV) is the current worth of a future sum of money, discounted at a specific rate. PV = FV / (1 + r)^n, where FV is future value, r is the discount rate per period, and n is the number of periods.