Calculate present value — how much a future amount of money is worth today, given a discount rate. The foundation of investment and finance decisions.
How it works
- Enter the future monetary value.
- Set the required discount rate (your opportunity cost).
- The calculator reverses compound growth to show what that cash is worth right now.
Frequently asked questions
Why is future money worth less?
Because money today can be invested to grow. A dollar in ten years is worth less than a dollar now.
What discount rate should I use?
Often your expected investment return or cost of capital. A higher rate discounts future money more steeply.
Where is present value used?
Valuing investments, comparing a lump sum against installments, and capital budgeting.