# Present Value Calculator

URL: https://speedycalculator.com/calculators/finance/present-value/
Last updated: 2026-10-25

> The present value calculator works out what a future amount – or a series of regular payments – is worth today at a given discount rate, with payments at the start or end of each period.

## Inputs

- Future value
- Periodic payment
- Discount rate per period (%)
- Number of periods
- Payment timing

## Results

- Present value
- Discount (time value)
- Discount factor

## Formula

```
PV = FV ÷ (1 + r)^n + PMT × [1 − (1 + r)^−n] ÷ r × (1 + r × timing)
```

## Explanation

Money in the future is worth less than money today because today's money can earn interest. Present value lets you compare a lump sum now with payments later, value bonds and decide between offers.

### How to use the Present Value Calculator

- **Future value**
- **Periodic payment**
- **Discount rate per period**
- **Number of periods**
- **Payment timing**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the future amount, any regular payment, the discount rate per period and the number of periods.

### Tips

- Use the nominal annual rate and pick the compounding frequency your bank or broker states.
- Small differences in return or fees compound into large differences over decades.
- Run the calculation with a cautious, a central and an optimistic return to see the range of outcomes.
- Past returns do not guarantee future returns – nothing here is investment advice.

### Common mistakes to avoid

- Comparing an APR with an APY or effective rate.
- Ignoring inflation, taxes and fees when judging a real return.
- Entering a percentage as a decimal (5 instead of 0.05 is correct here).

### Inputs explained

FieldWhat to enterFuture valueAmount in your currencyPeriodic paymentAmount in your currencyDiscount rate per periodIn %Number of periodsA numberPayment timingChoose one: End of each period, Beginning of each period

### What each result means

- **Present value** = pvann([Discount rate per period]÷100, [Number of periods], [Periodic payment], [Payment timing], [Future value])
- **Discount (time value)** = [Future value] + [Periodic payment]×[Number of periods] - [Present value]
- **Discount factor** = 1÷(1 + [Discount rate per period]÷100)^[Number of periods]

### Example values

How the main result changes when **Future value** changes and everything else stays at the example values above:

Future valuePresent value12,5006,979.9318,75010,469.925,00013,959.8731,25017,449.8437,50020,939.850,00027,919.74

## Worked example

Inputs — Future value: $25,000; Periodic payment: $0; Discount rate per period: 6 %; Number of periods: 10; Payment timing: End of each period.

Results — **Present value = $13,959.87**; Discount (time value) = $11,040.13; Discount factor = 0.55839.

## FAQ

**What is present value?**
The value today of money received in the future.

**How do I calculate it?**
PV = FV ÷ (1 + r)^n for a single amount.

**Why does a higher rate give a lower PV?**
Future money is discounted more heavily.

**What formula does the Present Value Calculator use?**
PV = FV ÷ (1 + r)^n + PMT × [1 − (1 + r)^−n] ÷ r × (1 + r × timing).


## Sources

- [U.S. SEC – Investor.gov compound interest and investing basics](https://www.investor.gov/)