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Calcimator

Present Value Calculator

Calculate the present value of a future sum of money. Understand how much future money is worth today using time value of money principles.

Inputs

$
%
years

Results

Present Value

$50,834.93

≈ 5 years of state college

Interest / Discount Amount$49,165.07
Effective Annual Rate7%
Discount Factor0.5083
How to Use This Calculator
  1. Enter the future value — the amount of money you expect to receive or need in the future.
  2. Set the discount or interest rate to reflect the time value of money or your required return.
  3. Enter the number of years until you receive the future amount.
  4. Select compounding frequency if applicable.
  5. The present value tells you what that future amount is worth in today's dollars.

How the result changes with Future Value

Future ValuePresent Value
$10,000,001.00$5,083,493.43
$35,000,001.00$17,792,225.73
$65,000,000.00$33,042,703.99
$90,000,000.00$45,751,436.29

What each input means

Future Value
The amount of money you expect to receive in the future.
Discount Rate / Interest Rate
Expected annual rate of return or discount rate.
Time Period
Number of years until you receive the future value.
Compounding Frequency
How often interest is compounded per year.

What each result means

Present Value
What the future sum is worth in today's dollars.
Interest / Discount Amount
The difference between future and present value.
Effective Annual Rate
The true annual rate accounting for compounding.
Discount Factor
Multiplier to convert future value to present value.

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Future Value = 100000, Discount Rate / Interest Rate = 7, Time Period = 10, Compounding Frequency = 1 = 4 input(s) provided
  2. Calculate Present Value
    50834.93 = $50,834.93
  3. Calculate Interest / Discount Amount
    Interest / Discount Amount
    49165.07 = $49,165.07
  4. Calculate Effective Annual Rate
    Effective Annual Rate
    7 = 7

Engine last updated .

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