Present Value Calculator

Calculate what future money is worth in today's dollars using time value of money.

Present Value (PV)

PV = FV / (1 + r)^n

Present Value

₹46,319.35

Discount Amount

₹53,680.65

Discount %

53.68%

PV = 100000 / (1 + 0.08)^10 = ₹46,319.35

Ready to start investing?

Open a free account with a trusted broker to put your plan into action.

GrowwOpen a free Demat account and start investing in mutual funds & stocks.ZerodhaIndia's largest stockbroker — open a free trading & demat account.

Sponsored links — SmartCalculations may earn a commission at no extra cost to you.

Present Value Calculator Formula & How It Works

PV = FV ÷ (1 + r)ⁿ | PV of Annuity = PMT × [1 − (1+r)^−n] ÷ r
  • FV = Future value (amount to receive in the future)
  • r = Discount rate per period
  • n = Number of periods
  • PMT = Periodic payment (for annuity PV)

The time value of money principle states that money today is worth more than the same amount in the future, because money today can be invested to earn a return. Present value discounts future cash flows back to today's equivalent. A higher discount rate means future money is worth less today.

Present Value Calculator FAQs

What is the present value of $10,000 received in 5 years?

At a 7% discount rate: PV = $10,000 / (1.07)⁵ = $7,130. You would need to invest $7,130 today at 7% to have $10,000 in 5 years. The higher the discount rate, the less future money is worth today.

What discount rate should I use for present value?

Common choices: risk-free rate (current T-bill or savings rate), your required rate of return, weighted average cost of capital (WACC) for business projects, or market interest rate for loan comparison.

What is the difference between present value and net present value?

Present Value (PV) is the today's worth of future cash inflows. Net Present Value (NPV) = PV of inflows − Initial Investment. Positive NPV means the investment creates value; negative NPV means it destroys value.

Related Calculators

Future Value Calculator

Calculate the future value of any investment, savings plan, or regular payment series.

Investment Calculator

Project the future value of your investments including regular contributions and compound growth.

ROI Calculator

Calculate return on investment as a percentage and annual rate of return.

Annuity Calculator

Calculate annuity future value, present value, and periodic payment for retirement planning.