Today's worth of future money. The Present Value Calculator takes future amount, discount rate, years until received and returns present value plus discount (time value), discount factor. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Investment maths is about comparing money at different points in time on a fair basis. Compound rates, discounting and annualised returns let you compare options of different sizes and durations. Use the worked example below to check the maths against your own figures.
How the Present Value Calculator works
Money in the future is worth less than money today because of what today's money could earn. The present value is the amount you would need now to grow into the future sum at the discount rate.
Worked example
With the example values (future amount of $20,000, discount rate of 8%, years until received of 5 years), the present value is $13,611.66; discount (time value) $6,388.34, discount factor 0.68. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is present value calculated?
present value = future amount ÷ (1 + rate)years.
Which figures do I need?
Future amount, discount rate, years until received. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
Does the calculator account for taxes and fees?
Only where there is an input for them. For a true net return, add fees and taxes to your inputs or use the stock and crypto profit calculators, which include them.
