Present value of a future amount
Discount a future lump sum by your assumed annual rate.
How this works
Present value PV = FV/(1+r)^t, where FV is the future lump sum, r is the annual discount percentage divided by 100 and t is years. At a zero discount rate, present value equals the future amount.
Example
The illustration may use different inputs from the reproducible default inputs listed below.
The default calculation discounts $10,000 for 10 years at 5%: $10,000/(1.05)^10. With all reset-default inputs, present value: $6,139.13.
- Future amount ($)
- 10000
- Annual discount rate (%)
- 5
- Years
- 10
- Present value
- $6,139.13
Scope and assumptions
Uses one constant nonnegative annual discount rate and a single future payment. Intermediate cash flows, taxes, fees and uncertainty are not modeled. The discount rate is your assumption, not a market quote or required return recommendation.
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