Finance tools
Present value calculator
Free present value calculator (PV calculator) for time value of money — discount a lump sum or present value of annuity to today’s value. Enter future value or periodic payment, discount rate, and periods for live PV, growth chart, period schedule, and CSV/PDF export. No sign-up.
What is present value (PV)?
Present value (PV) is what a future cash flow is worth today after discounting for the time value of money. A dollar received later is worth less than a dollar now because you could invest today’s money and earn interest.
A present value calculator (often shortened to PV calculator) answers questions like “What is $1,000 in ten years worth today at 6%?” or “What is the value today of $100 received each year for ten years?” The same math underpins bond pricing, lawsuit settlements, pension buyouts, and lease valuations — anywhere you need today’s equivalent of future cash.
Results are illustrative for planning and education, not investment advice.
Lump sum PV
Discount one future amount — bonds, inheritances, contract payouts.
Annuity PV
Equal periodic payments — leases, pensions, vendor contracts.
Schedule + chart
Period-by-period balances and a discount accumulation chart.
CSV/PDF export
Download inputs and headline PV for Excel or reports.
Related tools: future value calculator (full 5-mode TVM), NPV calculator (irregular project cash flows), WACC calculator, compound interest calculator, inflation calculator, and payback period calculator.
Present value formula
The basic present value formula for a single future amount is the inverse of future value:
Lump sum and annuity PV
PV = FV ÷ (1 + i)n
PVannuity = PMT × [1 − (1 + i)−n] ÷ i for an ordinary annuity (payments at period end). Multiply by (1 + i) for annuity due (beginning of period). i is the periodic rate from your annual rate and compounding frequency; n is the number of periods.
Worked example (lump sum): What is $1,000 in 10 years worth today at 6% with annual compounding? PV = 1,000 ÷ (1.06)10 ≈ $558.39. Load the Lump sum $1k @ 6% preset above to verify.
Lump sum present value
Use Lump sum mode when you expect one future payment — a bond maturity, settlement, or savings goal. Enter the future value (FV), discount rate, number of periods, and compounding frequency. Set periodic payment to zero.
Large future receipt example
What is the present value of $100,000 received in 20 years at a 12% discount rate (annual compounding)?
PV = 100,000 ÷ (1.12)20 ≈ $10,366.68 today. Use the $100k @ 12% / 20y preset to reproduce this PAA-style answer.
Select lump sum mode
Choose Lump sum on the cash-flow rail and enter the future amount you want to discount.
Set rate, periods, and compounding
Enter your discount or interest rate, number of periods, and compounding frequency (annual, monthly, etc.).
Read PV and export
Review present value, total discount, chart, and period schedule — export CSV or PDF if needed.
Smaller receipt example: $5,000 in 10 years at 10% → PV ≈ $1,927.72. Try the $5k @ 10% / 10y preset.
Present value of an annuity
A present value of annuity calculator discounts a stream of equal payments. Switch to Annuity mode, enter periodic payment (PMT), rate, periods, and whether payments occur at the end (ordinary annuity) or beginning (annuity due) of each period.
Common use cases: lease payments, pension income streams, structured settlements, and vendor contracts with level annual cash flows. For uneven Year 1–N project inflows, use our NPV calculator instead.
Ordinary annuity example
$100 per period for 10 periods at 6% (annual compounding, end-of-period payments).
PV ≈ $736.01 — the sum you would pay today to replicate that payment stream. Load the Annuity $100 × 10 preset to reproduce this textbook example.
Annuity due (beginning-of-period timing) yields a slightly higher PV because each payment is received one period sooner. Toggle Payment timing in the advanced panel to compare.
Discount rate, monthly payments, and compounding
Your discount rate is the return you require to invest today instead of waiting — often called an interest rate in savings examples and a hurdle rate in corporate finance. For business cases, estimate WACC with our WACC calculator and use that rate consistently across PV, NPV, and payback models.
Monthly payments: when cash flows or compounding are monthly, set compounding = Monthly and enter periods as the number of months (e.g. 120 for ten years). Example — $1,000 received in 10 years at 6% with monthly compounding: 120 periods, monthly rate implied → PV ≈ $558.39 (same as annual 10-period discount at 6% when periods align).
More frequent compounding lowers PV of a fixed future amount because each sub-period applies an additional discount factor. Match compounding to your bond coupon, loan, or contract terms — annual for textbook problems, monthly for many consumer and mortgage schedules.
Present value vs net present value (NPV)
Present value discounts one future lump sum or a level annuity to today using a fixed rate and equal periods. Net present value (NPV) is a capital budgeting metric: sum the present values of uneven yearly cash flows from a project and subtract the initial investment.
Use this present value calculator for textbook TVM questions (“What is $X worth today?”). Use our NPV calculator when Year 1–N inflows differ, you have an upfront outlay, and you need an accept/reject verdict on a project.
For infinite equal payments (preferred dividends, perpetual bonds), use our perpetuity calculator — PV = C ÷ r with no periods field.
For hurdle-rate context, estimate WACC with our WACC calculator before discounting long-horizon business cases — then run NPV, not lump-sum PV alone.
Present value vs future value
Future value (FV) projects today’s money forward with interest: FV = PV × (1 + i)n. Present value (PV) is the inverse — discount a known future amount back to today.
This page is PV-first (lump sum + annuity). For the full five-variable TVM solver — future value, payment, rate, or periods — use our future value calculator. For savings compare/goal narratives with monthly contributions, see the compound interest calculator.
To adjust for purchasing power erosion, pair discount-rate assumptions with our inflation calculator — use real flows with a real rate, or nominal with nominal.
How to calculate present value in Excel
Excel’s =PV(rate, nper, pmt, fv, type) returns present value. rate and nper must use the same period (e.g. monthly rate and months). pmt and fv use opposite signs for money in vs out.
Lump sum (annual): $1,000 in 10 years at 6%: =PV(6%, 10, 0, -1000, 0) → PV ≈ $558.39.
Lump sum (monthly compounding): same outcome with 120 months: =PV(6%/12, 120, 0, -1000, 0) → ≈ $558.39.
Annuity example: $100 per year for 10 years at 6%, end of period: =PV(6%, 10, -100, 0, 0) → PV ≈ $736.01.
Google Sheets uses the same =PV() syntax. Export the schedule from this calculator to verify each period against your spreadsheet.
More free tools
Discover more calculators for time tracking, payroll, and HR.
Frequently asked questions about this present value calculator
What is present value?
Present value is the amount of money you would need today to equal a specific future cash flow, after discounting for interest or your required return. It reflects the time value of money — future dollars are worth less than dollars today.
What is the present value formula?
For a lump sum: PV = FV ÷ (1 + i)n. For an ordinary annuity: PV = PMT × [1 − (1 + i)−n] ÷ i. See the formula section above for annuity due and compounding notes.
How do you calculate present value?
Identify the future amount or payment stream, choose a discount rate and number of periods, convert the annual rate to a periodic rate i matching your compounding frequency, then apply the PV formula. This calculator performs those steps live for lump sum or annuity mode.
What is the present value of $1,000 in 10 years at 6%?
With annual compounding and no periodic payments: PV = 1,000 ÷ (1.06)10 ≈ $558.39. Enter FV = 1000, rate = 6%, periods = 10, compounding = Annually in Lump sum mode, or load the Lump sum $1k @ 6% preset.
What is the present value of $100,000 at 12% for 20 years?
Discounting a single future receipt with annual compounding: PV = 100,000 ÷ (1.12)20 ≈ $10,366.68. Use Lump sum mode with FV = 100000, rate = 12%, periods = 20, or the $100k @ 12% / 20y preset.
What is the present value of $5,000 in 10 years at 10%?
With annual compounding and no annuity payments: PV = 5,000 ÷ (1.10)10 ≈ $1,927.72. Try the $5k @ 10% / 10y preset in lump sum mode.
What is the present value of a $100 annuity for 10 years at 6%?
Equal $100 payments at the end of each period for 10 periods at 6% (annual compounding): PV ≈ $736.01. Switch to Annuity mode or load the Annuity $100 × 10 preset.
How do you calculate present value in Excel?
Use =PV(rate, nper, pmt, fv, type). Lump sum: =PV(6%, 10, 0, -1000, 0) → ≈ $558.39. Annuity: =PV(6%, 10, -100, 0, 0) → ≈ $736.01. Match period units to your compounding choice.
What is the difference between present value and net present value?
PV discounts a lump sum or level annuity to today. NPV sums discounted uneven project cash flows and subtracts the initial investment for accept/reject decisions. Use our NPV calculator for capital budgeting with Year 1–N flows that differ.
What is the difference between present value and future value?
Future value grows today’s money forward; present value discounts a future amount back. They are inverses: PV = FV ÷ (1 + i)n for a lump sum. Use our future value calculator to solve FV, payment, rate, or periods.
What discount rate should I use for present value?
Use your required return, opportunity cost of capital, or a risk-adjusted hurdle rate. For corporate projects, WACC is common — estimate it with our WACC calculator. The same rate should be consistent across PV, NPV, and payback models.
Ordinary annuity vs annuity due — which PV is higher?
Annuity due (payments at the beginning of each period) has a higher present value than an ordinary annuity (end of period) because each payment is received sooner. Toggle payment timing in the advanced panel to compare both on the same inputs.
How does compounding frequency affect present value?
More frequent compounding (e.g. monthly vs annual) increases the effective periodic rate for the same nominal annual rate, which lowers present value of a fixed future amount — you discount more aggressively per period. Select the compounding frequency that matches your assumption or account terms.
How do you calculate present value with inflation?
Use real cash flows with a real discount rate, or nominal flows with a nominal rate — do not mix. For purchasing-power context, see our inflation calculator alongside your discount-rate assumption.
What is a PV calculator?
A PV calculator is the same as a present value calculator — it discounts future cash flows to today’s value using a rate and number of periods. This page supports lump-sum PV and present value of annuity mode with live chart, schedule, and export.
What is the present value of a $300 annuity payment over 5 years?
With $300 paid at the end of each period for 5 periods at a 5% discount rate (annual compounding): PV ≈ $1,298.84. At 6%: PV ≈ $1,263.71. Switch to Annuity mode, enter PMT = 300, periods = 5, and your discount rate.
When should I use present value of an annuity vs a lump sum?
Use lump sum PV for one future receipt (bond maturity, inheritance, settlement). Use present value of annuity for equal recurring payments (lease, pension income, level vendor contract). If cash flows vary by year or you have an upfront investment, use our NPV calculator.
How do you calculate present value with monthly payments?
Set compounding to Monthly and enter periods as the number of months. Example — $500 per month for 12 months at 6% with monthly compounding: Annuity mode, PMT = 500, periods = 12, compounding = Monthly → PV ≈ $5,814.40. Match period units in Excel: =PV(6%/12, 12, -500, 0, 0).
What is the difference between discount rate and interest rate?
In PV math they are the same input: the per-period rate i in PV = FV ÷ (1 + i)n. “Discount rate” emphasizes required return when valuing future cash; “interest rate” emphasizes growth on today’s money. Use one consistent nominal or real rate — pair with our inflation calculator when adjusting for purchasing power.
What is the present value of a perpetuity?
A perpetuity pays forever with no final period. Level perpetuity: PV = C ÷ r (payment ÷ discount rate). Example: $10 per year at 5% → $200. Growing perpetuity (Gordon): PV = C₁ ÷ (r − g) with r > g.
This page needs a finite number of periods for annuities. For infinite payment streams, use our perpetuity calculator.
Is this present value calculator free?
Yes. Lump sum and annuity modes, schedule, chart, and CSV/PDF export are free with no sign-up. Results are educational estimates, not financial advice.