Present Value Calculator
Find out what a future sum of money is worth today, given a discount rate.
This tool runs entirely in your browser. Your files are never uploaded to a server.
This discounts a single future lump sum only; it does not account for a series of future cash flows the way the NPV calculator does.
9107.42
Present value
What this calculator does
Discounts a single future lump sum back to today at one constant annual rate and compounding frequency, answering what that future amount is worth in today's money.
How to use it
Enter the future value, an annual discount rate, the number of years, and a compounding frequency. Use the frequency that matches how the rate you entered is meant to compound.
Worked example
A future value of 15,000 in 10 years, discounted at 5% with monthly compounding, is worth about 9,107.42 today. The same future value and rate with annual compounding instead is worth about 9,208.70 today — a reminder that compounding frequency changes the result even when the stated annual rate is the same. Automated tests verify both figures.
Formula
Present value = future value ÷ (1 + r)ⁿ, where r is the annual discount rate divided by the compounding frequency and n is frequency × years. A higher discount rate or a longer time horizon both reduce the present value, since the same future amount is discounted more.
Present value vs. future value
These two calculators are inverses: this one starts from a known future amount and discounts it to today, while the Future Value calculator starts from an amount today and grows it forward — feeding the present value result back into the future value calculator at the same rate and horizon returns the original future amount.
One lump sum, not a series of cash flows
This tool discounts a single future amount. If you have several future cash flows to discount and sum, use the NPV calculator instead, which applies the same discounting logic to each cash flow in a series.
Choosing a discount rate
The rate should reflect either the return available elsewhere for that money or a risk-adjusted rate matching how certain the future payment is — there is no single universal number, and the right choice depends on the specific decision being evaluated.
Scope, sources and privacy
This is an educational estimate, not investment or tax advice. The discounting formula and its relationship to future value were checked against U.S. SEC Investor.gov education materials. Reviewed September 2026. Calculation runs locally in the browser; Quiklio does not upload the entered values.
Frequently Asked Questions
- What is present value used for?
- It's used to compare money at different points in time on an equal footing — for example, deciding whether a future payout is worth more or less than accepting a smaller amount today.
- What discount rate should I use?
- The discount rate should reflect either the return you could earn elsewhere on that money or an appropriate risk-adjusted rate for the certainty of the future payment — there's no single universal number.
- How does present value relate to future value?
- They're inverses of each other: present value discounts a future amount back to today, while future value grows a present amount forward in time at the same rate.