Present Value Calculator
Present value from future value, discount rate and years.
How it works
PV = FV ÷ (1 + r)^t
PV answers "what is future money worth today". Higher discount rate or longer time lowers PV.
Worked example
Receive 100,000 in 5 years at a 5% discount rate: PV = 100000 ÷ 1.05⁵ ≈ 78,353.
In other words, ~78,353 today is equivalent to 100,000 in five years at 5%.
Notes and limitations
The higher the discount rate, the lower the present value — which is why "high guaranteed returns" imply high risk. When comparing payment schedules, discount everything to the same date.