Present Value Calculator
Calculate today’s value of a future amount or a series of future payments using a discount rate.
What is the Present Value Calculator?
Present value (PV) answers the question: how much is a future amount worth in today’s money, given a rate of return you could otherwise earn?
How does it work?
A future amount is divided by (1 + r)^n. For regular payments, the calculator uses the present value of an annuity.
Formula
PV = FV ÷ (1 + r)^n
PV (annuity) = PMT × (1 − (1 + r)^−n) ÷ r
Example
₹10,00,000 received in 10 years, discounted at 7%, is worth ₹5,08,349.29 today.
Frequently asked questions
Which discount rate should I use?
Use the return you could reasonably earn on an alternative investment of similar risk, or the inflation rate to see real value.
Related tools
Enable JavaScript to use this calculator.