Present Value Calculator
What a future amount of money is worth today at a given discount rate.
Results
Present value
16,920.98
Difference
8079.02
What this tool does
Money available later is worth less than money available now, because today's money could be invested in the meantime. Discounting reverses compound growth, and it is the basis of every investment appraisal and lease comparison.
Formula
PV = FV ÷ (1 + i)^t
Variables
| Symbol | Meaning | Unit |
|---|---|---|
fv | Future value | — |
r | Annual interest rate | % |
t | Years | — |
PV | Present value | — |
DS | Difference | — |
Worked example
- Future value25,000
- Annual interest rate5 %
- Years8
- Present value16,920.98
- Difference8079.02
Limitations
- This is an informational calculator, not personalised financial advice. Rates, fees, taxes and contract conditions vary between institutions and countries.
- The tool works with whatever currency you use for the inputs; it does not convert between currencies.