Present Value Calculator
Calculate the present value of a future sum or a series of cash flows (NPV) with compounding options.
A future value of $100,000.00 in 10 years at a 8% discount rate is worth $46,319.35 today.
Formula: PV = FV / (1 + r/m)^(t×m)
100,000.00 / (1 + 0.08/1)^(10 × 1) = 100,000.00 / 1.080000^10 = $46,319.35
Understanding Present Value & Discounting
Present Value (PV) is how much a future amount of money is worth today, after accounting for the time value of money. A dollar today is worth more than a dollar in the future because it can be invested and earn interest.
When discounting a series of cash flows (such as in business investments or real estate projects), theNet Present Value (NPV) is calculated by subtracting the initial investment cost from the sum of the discounted future cash flows. If the NPV is positive, the investment is expected to generate a return exceeding the discount rate.
Private & free — this tool runs entirely in your browser.