Scenario 1
Lump sum evaluation
$100,000 in 10 years at 6% → worth $55,839 today. You'd only pay up to that amount.
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Present Value Calculator
Find out what a future payment is really worth today — before you commit.
Adjust your inputs
Results update instantly as you type or drag.
1 – 100,000,000
$
0.1 – 30
%
Your required rate of return or opportunity cost
0 – 1,000,000
$
For annuity valuation — leave 0 for lump sum
1 – 50
Quick insights
Discount amount
$44,161
Annuity present value
$0.00
Quick answer
How do you calculate present value?
PV = FV ÷ (1 + r)^n — the future amount divided by compound growth factor. It answers: what is that future payment worth today?
How it works
From inputs to result in four steps
A quick walkthrough of what this calculator does behind the scenes.
- 1
Enter the future value (amount you'll receive).
- 2
Set the discount (interest) rate.
- 3
Add annual payments if applicable.
- 4
Set the number of years.
Formula
The math behind the number
No black box — here's exactly how the result is computed.
Formula
PV (lump sum) = FV ÷ (1 + r)^n
PV (annuity) = PMT × (1 − (1+r)^−n) / r
FV = future value, r = annual discount rate, n = years, PMT = annual paymentExamples
Real-world scenarios
See how the numbers play out for typical use cases.
Scenario 2
Annuity valuation
$10,000/year for 5 years at 5% → PV = $43,295. Compare to a $50,000 lump sum offer.
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