Investment Calculators
Present Value Calculator
Discount a future sum, or a stream of future payments, back to what it is worth in today's money.
Present value
$27,920
- Discount applied
- $22,080
- Present value of the payment stream
- $0
How this calculator works
PV = FV ÷ (1 + r)^n
- FV
- the future amount
- r
- the discount rate
- n
- the number of years
Example calculation
Illustrative example — not advice
Worked example — the present value calculator as it loads, using the default figures below.
- 01Enter future amount: $50,000.
- 02Enter annual payment received: $0.
- 03Enter discount rate: 6%.
- 04Enter years away: 10 years.
- 05Read the present value from the results panel: $27,920.
Present value: $27,920. Discount applied: $22,080. Present value of the payment stream: $0.
These figures come straight from the calculator above running on the values listed, so you can retype them and confirm every number yourself. Change any input and the results update immediately. Illustrative only — not a quote, offer or recommendation.
Important considerations
- The discount rate should reflect the risk of the cash flow, not just inflation.
- Annual payments are assumed to arrive at each year end.
Related calculators
- Future Value CalculatorWhat a sum today is worth in the future.
- Investment CalculatorProjected value of contributions and returns over time.
- Inflation CalculatorPurchasing power of a sum over time.
- Retirement Income CalculatorSustainable income and how long the pot lasts.
- ROI CalculatorTotal and annualised return on any investment.
- CAGR CalculatorCompound annual growth rate between two values.
Terms used here
Frequently asked questions
Why discount at all?
Money available today can be invested, so a sum promised later is worth less than the same sum now.
Disclaimer
Legamoney calculators are educational tools. Results are estimates based on the figures you enter and do not constitute financial, tax or legal advice.
Last reviewed 2026-08-01