{
    "name": "Present Value Calculator",
    "url": "https://calculators.geekmidst.com/calculators/present-value-calculator",
    "markdown": "https://calculators.geekmidst.com/calculators/present-value-calculator.md",
    "category": "Finance",
    "description": "Find what a future amount or a series of regular payments is worth today at a given discount rate, with yearly to monthly compounding and payments at either end.",
    "summary": "Present value answers “how much would I need today to match this future money?” Each future amount is divided by (1 + rate) once for every period it is away.",
    "also_called": [
        "PV calculator",
        "Discounting calculator"
    ],
    "applies_to": "Worldwide",
    "last_updated": "2026-10-29",
    "computation": "Results are computed in the visitor’s browser on the HTML page. This API describes the calculator; it does not compute results.",
    "inputs": [
        {
            "name": "fv",
            "label": "Future lump sum",
            "type": "number",
            "default": "10000",
            "optional": true
        },
        {
            "name": "payment",
            "label": "Regular payment per period",
            "type": "number",
            "default": "0",
            "optional": true
        },
        {
            "name": "rate",
            "label": "Discount rate (per year)",
            "type": "number",
            "default": "5",
            "unit": "%"
        },
        {
            "name": "years",
            "label": "Years",
            "type": "number",
            "default": "10",
            "unit": "years"
        },
        {
            "name": "frequency",
            "label": "Periods per year",
            "type": "select",
            "default": "1",
            "options": {
                "1": "Yearly",
                "2": "Half-yearly",
                "4": "Quarterly",
                "12": "Monthly"
            }
        },
        {
            "name": "timing",
            "label": "Payments made at",
            "type": "segmented",
            "default": "end",
            "options": {
                "end": "End of period",
                "begin": "Start of period"
            }
        },
        {
            "name": "currency",
            "label": "Currency",
            "type": "currency",
            "default": "USD"
        }
    ],
    "outputs": [
        {
            "key": "pv",
            "label": "Present value",
            "format": "currency"
        },
        {
            "key": "pv_lump",
            "label": "PV of the lump sum",
            "format": "currency"
        },
        {
            "key": "pv_payments",
            "label": "PV of the payments",
            "format": "currency"
        },
        {
            "key": "total_received",
            "label": "Total received (undiscounted)",
            "format": "currency"
        },
        {
            "key": "discount",
            "label": "Total discount",
            "format": "currency"
        }
    ],
    "formula": {
        "text": "PV = FV ÷ (1 + i)ⁿ + PMT × (1 − (1 + i)^−n) ÷ i × (1 + i if paid at the start)",
        "variables": {
            "i": "annual rate ÷ periods per year",
            "n": "years × periods per year",
            "PMT": "payment each period"
        }
    },
    "worked_example": {
        "inputs": {
            "fv": "10000",
            "payment": "0",
            "rate": "5",
            "years": "10",
            "frequency": "1",
            "timing": "end",
            "currency": "USD"
        },
        "steps": [
            "(1.05)¹⁰ = 1.628895.",
            "PV = 10,000 ÷ 1.628895 = $6,139.13."
        ],
        "result": "$10,000 received in 10 years is worth $6,139.13 today at a 5% discount rate."
    },
    "interpretation": "Use a discount rate equal to the return you could earn elsewhere with similar risk. A higher rate or a longer wait makes future money worth less today.",
    "assumptions": [
        "A constant rate, compounded once per payment period.",
        "Payments are equal and evenly spaced."
    ],
    "limitations": [
        "Growing payments and irregular dates are not modelled."
    ],
    "rules": null,
    "faqs": [
        {
            "question": "What discount rate should I use?",
            "answer": "The return you give up by waiting: for personal decisions, a savings or investment rate; for a business, its cost of capital."
        },
        {
            "question": "What does “start of period” change?",
            "answer": "Each payment arrives one period earlier, so it is discounted one period less and the PV is higher by a factor of (1 + i)."
        }
    ],
    "sources": [],
    "related": [
        {
            "name": "Future Value Calculator",
            "url": "https://calculators.geekmidst.com/calculators/future-value-calculator"
        },
        {
            "name": "Compound Interest Calculator",
            "url": "https://calculators.geekmidst.com/calculators/compound-interest-calculator"
        },
        {
            "name": "Inflation Calculator",
            "url": "https://calculators.geekmidst.com/calculators/inflation-calculator"
        },
        {
            "name": "IRR Calculator",
            "url": "https://calculators.geekmidst.com/calculators/irr-calculator"
        }
    ],
    "disclaimer": null,
    "publisher": "GM¹X CalcVerse"
}