Present Value Calculator

Modify the values and click the Calculate button to use

Find today's value of a single future amount.

Present Value: $558.39

Present Value: $558.39
Future Value: $1000.00
Total Interest: $441.61
Periods: 10

Present value vs interest

Present value$558.3955.8%
Total interest$441.6144.2%

Present value by years until payment

Present value

What this present value calculator does

Present value answers a simple question: what is a future amount worth today if it could grow at a given interest rate? This calculator handles two common cases. Future Money discounts a single amount. Periodical Deposits discounts a series of equal deposits and also shows the future value of that plan.

The result is useful for comparing a payment later with cash available now, checking whether a savings goal is realistic, or estimating the amount needed today to fund a future expense.

How to use this calculator

Choose Future Money to discount one future amount.
Enter the future value, the number of periods, and the interest rate per period.
Choose Periodical Deposits to discount a series of deposits.
Enter the number of periods, interest rate, deposit amount, and whether deposits are made at the beginning or end of each period.
Click Calculate.

The default Future Money example discounts $1,000 for 10 periods at 6% per period, producing a present value of $558.39. The default deposit example uses $100 per period for 10 periods at 6%, producing a present value of $736.01 and a future value of $1,318.08.

Present value formulas

For a single future amount:

PV = FV / (1 + r)^n

For a series of end-of-period deposits:

PV = PMT × (1 − (1 + r)^−n) / r

PV is the present value, FV is the future value, PMT is the deposit, r is the interest rate per period, and n is the number of periods. If deposits are made at the beginning of each period, each deposit is discounted for one fewer period.

What the results include

Present value: the value today of the future amount or deposit plan.
Future value: the ending value of the deposit plan.
Total interest: the difference between the future value and the amounts deposited.
Total principal: the sum of the deposits in the deposit plan.
Deposit schedule: yearly deposits, interest, and ending balance.
Balance chart: balance, cumulative deposits, and cumulative interest over time.

Assumptions and limitations

The calculator assumes a constant interest rate and equal periodic deposits. Each period is treated as one year in this version, and the deposit plan supports up to 50 periods. Taxes, inflation, fees, and variable rates are not included. The Future Money calculation supports up to 1,200 periods.

Frequently asked questions

Why is present value lower than future value?

Money available today can earn interest. A future amount is therefore worth less today when discounted at a positive rate.

What interest rate should I use?

Use a rate that reflects the return you could earn on the money between now and the future date. The right rate depends on the investment and the risk involved.

What is the difference between the two tabs?

Future Money discounts one amount. Periodical Deposits discounts a series of equal deposits and also shows how the deposits grow over time.

Are deposits made at the beginning or end of each period?

Choose the timing that matches the account. Beginning-of-period deposits have one extra period to earn interest, so their present value is slightly higher.

Source

References:

Disclaimer

This calculator is for informational and planning purposes only. It is not financial advice. Actual interest rates and account terms may differ.

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