Present Value Calculator
Determine the current worth of a future sum of money or cash flow given a specific rate of return.
Asset Fact
"A dollar today is worth more than a dollar tomorrow because today's dollar can be invested to earn interest."
PV Calculation Ready
Enter your future target and discount rate to see its worth today.
Present Value Calculator
Determine the current worth of a future sum of money or cash flow given a specific rate of return.
What is Present Value?
Present Value (PV) is a financial concept that states an amount of money today is worth more than the same amount in the future. This is due to its potential earning capacity—a concept known as the Time Value of Money.
Time Value of Money
The core principle that money available now is worth more than the same amount in the future due to its earning capacity.
PV Formula
PV = FV / (1 + r)^nWhere PV is Present Value, FV is Future Value, r is the discount rate per period, and n is the number of periods.
Investment Scenarios
Retirement Goal
To have $1,000,000 in 30 years at a 7% return, you need to invest roughly $131,367 today.
Short-term Savings
To receive $10,000 in 5 years at 5% interest, the present value is approximately $7,835.