Enter Future value ($), Discount rate (%) and Time period (years) and the remaining scenario settings to review present value with this tool. A higher discount rate gives a lower present value for the same future amount.
| Year | Future Value | Present Value |
|---|---|---|
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Click "Calculate" to see the discounting schedule |
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Present value = Future value ÷ (1 + r)^nThe calculation links Future value ($), Discount rate (%) and Time period (years) to present value. A higher discount rate gives a lower present value for the same future amount. The rate expresses the selected time-value assumption.
Enter Future value ($), Discount rate (%) and Time period (years) and the remaining scenario settings to review present value with this tool. A higher discount rate gives a lower present value for the same future amount.
Discount a future amount into an equivalent amount today using a chosen rate and period count. Use it to compare money paid at different times.
A higher discount rate gives a lower present value for the same future amount. The rate expresses the selected time-value assumption.
Prepare Future value ($), Discount rate (%), Time period (years) and Compounding frequency. Express the discount rate per period and use the matching number of periods until the future payment.
A higher discount rate gives a lower present value for the same future amount. The rate expresses the selected time-value assumption. The result depends on the chosen rate and does not establish the risk, tax treatment or fair market price of an actual investment.
Use the full settings in the worked-example table. They produce Present Value: $6729.71. Compare the method and units as well as the displayed number.
The displayed relationship is Present value = Future value ÷ (1 + r)^n Express the discount rate per period and use the matching number of periods until the future payment.
The result depends on the chosen rate and does not establish the risk, tax treatment or fair market price of an actual investment. For a transaction or account decision, compare the inputs with the applicable statement, contract or official rules.
Worked present value calculator example. Set Future value ($) = 10000; Discount rate (%) = 8; Time period (years) = 5; Compounding frequency = Quarterly. The corresponding output is Present Value: $6729.71. A higher discount rate gives a lower present value for the same future amount.
Discount a future amount into an equivalent amount today using a chosen rate and period count. Use it to compare money paid at different times.
Express the discount rate per period and use the matching number of periods until the future payment.
| Field | Example value | Entry check |
|---|---|---|
| Future value ($) | 10000 | Use the amount for this scenario in the currency and period shown by the field. |
| Discount rate (%) | 8 | Enter a percentage in the form requested by the field, keeping its stated time basis. |
| Time period (years) | 5 | Use the period unit in the field label; months and years are not interchangeable. |
| Compounding frequency | Quarterly | Check the selected interval against the payment, deposit or growth assumptions. |
Relationship used for this example: Present value = Future value ÷ (1 + r)^n
A higher discount rate gives a lower present value for the same future amount. The rate expresses the selected time-value assumption.
| Output | Displayed result |
|---|---|
| Present Value | $6729.71 |
With these settings, present value is $6729.71. Use the same units and calculation mode when reproducing this example.
A higher discount rate gives a lower present value for the same future amount. The rate expresses the selected time-value assumption. The result depends on the chosen rate and does not establish the risk, tax treatment or fair market price of an actual investment.
Replace the illustrative future value ($) value (10000) with your own value, then complete the other inputs for the same scenario. Express the discount rate per period and use the matching number of periods until the future payment.