Present Value Calculator
Calculate present value from your own entered figures.
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Currency: Amounts are calculated in the currency you select; this site does not convert between currencies and does not use live exchange rates.
What this tool does
Calculate present value from your own entered figures. Payments are annual and end-of-year (ordinary annuity); the discount rate is assumed constant.
How to use the Present Value Calculator
- Enter or select future value.
- Enter or select annual payment (annuity, optional).
- Enter or select discount rate (%).
- Enter or select years.
- Read the calculated result; change any measurement to compare alternatives.
Formula
PV = FV/(1+r)^years + payment × (1 − (1+r)^−years)/r
- future
- Future value
- payment
- Annual payment (annuity, optional)
- rate
- Discount rate (%)
- years
- Years
Payments are annual and end-of-year (ordinary annuity); the discount rate is assumed constant.
Worked example
For present value calculator, the following measurements illustrate the exact method: Future value: 10000; Annual payment (annuity, optional): 0; Discount rate (%): 5; Years: 10.
Inputs
- Future value10000
- Annual payment (annuity, optional)0
- Discount rate (%)5
- Years10
Result
- Present value$6,139.13
- Present value of the lump sum alone$6,139.13
Results explained
- Present value
- Present value from the formula above. Payments are annual and end-of-year (ordinary annuity); the discount rate is assumed constant.
- Present value of the lump sum alone
- Present value of the lump sum alone from the formula above. Payments are annual and end-of-year (ordinary annuity); the discount rate is assumed constant.
Frequently asked questions
PV = FV/(1+r)^years + payment × (1 − (1+r)^−years)/r
Payments are annual and end-of-year (ordinary annuity); the discount rate is assumed constant.
No. All numbers are entered by you or come from the dated reference table shown on this page; calculations run locally.
This is an estimate, not financial, tax or legal advice. Verify the inputs and output with official sources and a qualified professional.
Check period consistency, currency, percentage inputs and the assumptions: Payments are annual and end-of-year (ordinary annuity); the discount rate is assumed constant.