Present Value Calculator

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Find the present or future value of a lump sum using the time value of money. Set the rate, term and compounding frequency to see how money grows or discounts.

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%
yrs
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Total interest –
Growth factor –
Uses the compound formula FV = PV × (1 + r/n)^(n·t). Present value discounts a known future amount back to today; future value grows a known amount forward.

About Present Value Calculator

The present value calculator applies the time value of money in both directions. It can discount a known future amount back to what it is worth today, or grow a known amount forward to its future value, using the compound formula FV = PV × (1 + r/n)^(n·t).

You set the annual interest rate, the number of years and the compounding frequency — annually, semi-annually, quarterly, monthly or daily. The results include the total interest involved and the growth factor, the overall multiplier between the two amounts.

Present value questions come up when valuing a future payout, comparing a lump sum today against money later, or checking investment growth assumptions. The calculator is free and works instantly in your browser.

How to use Present Value Calculator

  1. Choose what to solve: present value or future value.
  2. Enter the known amount — the future value or the present value.
  3. Set the annual interest rate and the number of years.
  4. Pick the compounding frequency, from annually to daily.
  5. Read the result, along with the total interest and the growth factor.

Frequently asked questions

What a future sum is worth in today’s money, given a rate of return. If $10,000 arrives in 10 years and money earns 5% annually, its present value is roughly $6,139 — the amount that would grow into it.

Use the return you could realistically earn elsewhere — a savings rate for safe money, or an expected investment return for riskier comparisons. A higher rate makes future money worth less today.

More frequent compounding grows money slightly faster, so daily compounding produces a marginally higher future value — and a lower present value — than annual compounding at the same nominal rate.

The multiplier (1 + r/n)^(n·t) that links the two amounts. A growth factor of 1.63 means the future value is 163% of the present value over the term you set.

The math is related but the intent differs: here the rate represents interest or return. To measure purchasing power lost to inflation, use an inflation rate as the discount rate instead.
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