Calculate the present value of future cash flows to understand what future money is worth today
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A dollar today is worth more than a dollar tomorrow. Present Value calculation is fundamental to finance, helping you evaluate investments, compare cash flows, and make smart financial decisions. Our calculator shows exactly what future money is worth in today's dollars.
Present Value (PV) is the current worth of future cash flows discounted at an appropriate rate. If you'll receive $10,000 in 5 years and discount rates are 5%, the present value is about $7,835. This concept is essential for comparing investment opportunities and understanding the time value of money.
Present Value Formula
PV = FV / (1 + r)^nCompare lump sum vs. annuity options for lottery or settlement payouts.
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Evaluate project NPV by comparing present value of benefits to costs.
Use rates based on your purpose: risk-free Treasury rates for safe comparisons, expected return rates for investments, or your opportunity cost (what you could earn elsewhere).