Present value calculator
Money & financeHow much is future money worth today?
Discount a future amount back to today's money at the rate you choose.
What you enter stays on your device while you use this tool. Opening a shared link sends the settings in its address to HowToolbox to prepare the page.
Present value
€6,139.13
€10,000.00 in 10 years is worth €3,860.87 less today
€10,000.00 ÷ 1.05¹⁰ · discount factor 0.6139
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Discount a future amount back to today's money at the rate you choose.
How to use
- Enter the amount you will receive or pay in the future.
- Enter the yearly rate you could earn on money meanwhile, and how many years away the amount is.
- Read what it is worth today and how much less that is. Copy the link to share it.
How it works
Money now is worth more than the same money later, because money you have today can earn interest meanwhile. Present value turns a future amount into the sum you would need today, at a chosen rate, to end up with that amount.
With a future amount FV, a yearly rate r and n years, the present value is PV = FV ÷ (1 + r)ⁿ. The number 1 ÷ (1 + r)ⁿ is the discount factor. This is the lump-sum formula in Wikipedia's article on present value, the reverse of compound interest.
The result depends strongly on the rate: pick the return you could realistically get instead, or the interest rate of a loan you would otherwise pay. Interest compounds once a year here; inflation and taxes are not included unless your rate accounts for them.
Worked example
What is €1,000.00 due in 5 years worth today at 10%?
- €1,000.00 ÷ (1 + 10 ÷ 100)^5 = €620.92.
€620.92
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Frequently asked questions
Which discount rate should I use?
The yearly return you could earn on the money in the meantime, with similar risk. For a safe payment, a savings or government bond rate is a common choice.
Is present value the same as adjusting for inflation?
Only if you use the inflation rate as the discount rate. Then the result is the future amount in today's purchasing power.
How do I find the future value instead?
Multiply by (1 + r)ⁿ instead of dividing. The compound interest calculator does that, with regular deposits too.
What does a 0% rate mean?
That money doesn't grow while you wait, so a future amount is worth exactly the same today.
Can I value several payments with this tool?
It values one future amount. For several payments at different times, use the net present value calculator.
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