# Present Value Calculator

> 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.

Category: Finance · Applies to: Worldwide · Last updated: 2026-10-29
Interactive calculator: https://calculators.geekmidst.com/calculators/present-value-calculator

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.

## Inputs
- Future lump sum (default 10000; optional)
- Regular payment per period (default 0; optional)
- Discount rate (per year) (unit %; default 5)
- Years (unit years; default 10)
- Periods per year (options: Yearly, Half-yearly, Quarterly, Monthly; default 1)
- Payments made at (options: End of period, Start of period; default end)
- Currency

## Results
- Present value
- PV of the lump sum
- PV of the payments
- Total received (undiscounted)
- Total discount

## Formula

```
PV = FV ÷ (1 + i)ⁿ + PMT × (1 − (1 + i)^−n) ÷ i × (1 + i if paid at the start)
```

Where:
- i: annual rate ÷ periods per year
- n: years × periods per year
- PMT: payment each period

## Worked example
1. (1.05)¹⁰ = 1.628895.
2. 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.

## What the result means

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 and limits
- A constant rate, compounded once per payment period.
- Payments are equal and evenly spaced.
- Growing payments and irregular dates are not modelled.

## Questions

### What discount rate should I use?

The return you give up by waiting: for personal decisions, a savings or investment rate; for a business, its cost of capital.

### What does “start of period” change?

Each payment arrives one period earlier, so it is discounted one period less and the PV is higher by a factor of (1 + i).

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- [Future Value Calculator](https://calculators.geekmidst.com/calculators/future-value-calculator)
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- [Inflation Calculator](https://calculators.geekmidst.com/calculators/inflation-calculator)
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Source: GM¹X CalcVerse — https://calculators.geekmidst.com/calculators/present-value-calculator