Present Value Calculator

Your details

Lump sum discounts one future payout. Annuity discounts a series of equal payments.
The single amount you expect to receive at the end of the term.
The annual return you could earn elsewhere, or your cost of capital.
%
How long until the money is received.
years
How often interest compounds and, for an annuity, how often a payment occurs.
Currency
Present value
$5,583.95
Total nominal cash received$10,000.00
Total discount (time value)$4,416.05

10,000 received over 10 years is worth about 5,584 today.

  • Present value discounts future cash back to today using the rate you could earn elsewhere.
  • A higher discount rate or a longer horizon both shrink the present value.
  • This is the mirror image of future value: discounting instead of compounding.

Next stepCompare this present value against what you would pay today to decide if the future cash is worth it.

 = Powered by OnlyCalculators