Present Value Calculator
Calculate the present value of future cash flows. Discount future money to today's dollars using the time value of money.
Present Value
$50,835
Total Discount
$49,165
Inflation-Adjusted (3%)
$74,409
PV = FV / (1 + r)^n = $100,000 / (1 + 7%)^10 = $50,835
What Is Present Value?
PV is the current worth of a future sum, discounted at a specific rate. A dollar today > a dollar tomorrow because today's can be invested.
Formula
Lump sum: PV = FV / (1 + r)n
Applications
- Lottery: lump sum vs. annual payments
- Pension buyouts
- Business valuation
Example
$100,000 in 10 years at 7%: PV = $50,835