Present Value Calculator to Calculate PV of Future Money

Present Value Calculator Sign

This calculator will calculate how much you would need to deposit or invest today in order for the investment to grow to a desired future amount within the desired time frame.

Plus, the present value calculator will also display a printable annual growth chart so you can see how the calculated present value will grow to the desired future value on a year-by-year basis.

Note that if you are looking to calculate the present value of a series of future cash flows, please visit the Present Value of an Annuity Calculator.

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Present Value Calculator

Calculate the present value of a future lump sum, given the term, discount rate, and discounting interval.

Special Instructions

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Selected Data Record:

A Data Record is a set of calculator entries that are stored in your web browser's Local Storage. If a Data Record is currently selected in the "Data" tab, this line will list the name you gave to that data record. If no data record is selected, or you have no entries stored for this calculator, the line will display "None".

DataData recordData recordSelected data record: None
Future sum:Future sum:Future lump sum:Future lump sum:

Future lump sum:

Enter the dollar amount of a future lump sum of money you wish to calculate present value for, without the dollar sign and commas.

# ofNumber ofNumber of

Number of months/years:

Select either Months or Years and enter the corresponding number of periods.

Disc rate:Discount rate:Present value discount rate:Present value discount rate:

Present value discount rate:

Enter the discount rate to be used in the present value calculations. Please enter as a percentage but without the percent sign (for .06 or 6%, enter 6).

Frequency:Frequency:Discounting frequency:Frequency of discounting:

Frequency of discounting:

Select the discounting frequency to use in the present value calculations.

PV:Present value:Present value of lump sum:Present value of future lump sum:

Present value of future lump sum:

Based on your entries, this is the amount you would need to deposit/invest now in order for your investment to grow to the entered future lump sum within the specified time frame.

Interest:Interest:Discounted interest earnings:Discounted interest earnings:

Discounted interest earnings:

Based on your entries, this is the total of the discounted interest earnings on the future lump sum. Or, this is how much future compound interest you will earn on the invested present value for the specified number of months or years.

If you would like to save the current entries to the secure online database, tap or click on the Data tab, select "New Data Record", give the data record a name, then tap or click the Save button. To save changes to previously saved entries, simply tap the Save button. Please select and "Clear" any data records you no longer need.

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Help and Tools


What "Present Value" is and what it's useful for.

What is "Present Value?"

When I was a kid, present value could be easily determined based on whether the gift I received was a toy or an article of clothing. It wasn't until my first year of college (age 24) that I learned that present value was actually a time value of money formula used to determine how much a future sum of money is worth today.

Since monies received now can immediately be deposited into an interest earning account or investment, monies received now end up being worth more in the future (the future value of a present amount). And conversely, monies to be received at some point in time in the future are worth less money now (the present value of a future amount).

Furthermore, because Present Value (PV) is the result of interest being deducted or discounted from a future amount (compounding in reverse), present value is also referred to as discounting. Therefore, a discounting interest calculator is virtually the same thing as a present value calculator.

What are Present Value Calculations Useful For?

While present value calculations are most often used in business and economics, having a keen understanding of PV, as well as having a means to calculate it, are both critical to a family being able to meet their future financial goals.

For example, if you were to receive an inheritance of $50,000, and one of your goals was to save up enough money to pay for your child's college education, present value calculations will help you to estimate whether or not investing the $50,000 will be enough to cover the future cost of college.

If your child is 2-years old and you estimate the future cost of college will be $120,000, and you believe you can earn 6% (compounded annually) on the $50,000 if you invest it, present value calculations will tell you that you will need to deposit $47,237.55 today in order for your investment to grow to $120,000 over the course of the next 16 years.

In other words, $120,000 16-years from now has a PV of $47,237.55, which means the $50,000 should be enough to cover the future cost of your child's education. On the other hand, if your inheritance was only $25,000, you would need to plan to save enough to make up for the shortfall.

If it does turn out that the lump sum is not enough to cover the future cost of college, or you don't expect to ever get a large lump sum of money handed down to you, you may want to calculate how much you would need to set aside on a periodic basis in order to have the full $120,000 16-years from now.

In that case you would need to use a calculator that combines future value of lump sum calculations with a future value of an annuity factor. This type of calculator is sometimes referred to either as an annuity payment calculator, or a savings goal calculator.

Adjust Calculator Width:

Move the slider to left and right to adjust the calculator width. Note that the Help and Tools panel will be hidden when the calculator is too wide to fit both on the screen. Moving the slider to the left will bring the instructions and tools panel back into view.

Also note that some calculators will reformat to accommodate the screen size as you make the calculator wider or narrower. If the calculator is narrow, columns of entry rows will be converted to a vertical entry form, whereas a wider calculator will display columns of entry rows, and the entry fields will be smaller in size ... since they will not need to be "thumb friendly".

Show/Hide Popup Keypads:

Select Show or Hide to show or hide the popup keypad icons located next to numeric entry fields. These are generally only needed for mobile devices that don't have decimal points in their numeric keypads. So if you are on a desktop, you may find the calculator to be more user-friendly and less cluttered without them.

Stick/Unstick Tools:

Select Stick or Unstick to stick or unstick the help and tools panel. Selecting "Stick" will keep the panel in view while scrolling the calculator vertically. If you find that annoying, select "Unstick" to keep the panel in a stationary position.

If the tools panel becomes "Unstuck" on its own, try clicking "Unstick" and then "Stick" to re-stick the panel.