GlenCalc

Present value calculator

Present value answers: how much is a future amount, or a series of future payments, worth in today’s money at a given rate of return?

Regular deposits (future value) or withdrawals received (present value).

For yearly periods, the annual rate. For monthly periods, the annual rate ÷ 12.

Your answer

Present value$15,347.83
Total received over time$25,000.00
Discount for waiting$9,652.17

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How we worked it out

Updated as you change the numbers.

  1. PV = FV ÷ (1 + r)ⁿ + PMT × (1 − (1 + r)⁻ⁿ) ÷ r, with (1 + r)ⁿ = 1.62889.

Method and assumptions

Present value reverses compounding: a sum received n periods from now is worth FV ÷ (1 + r)ⁿ today. A stream of equal payments is worth PMT × (1 − (1 + r)⁻ⁿ) ÷ r. The rate is your opportunity cost: what you could earn elsewhere.

Questions

What is $25,000 in 10 years worth today at 5%?

$15,347.83.

Sources

Method and figures checked on . Every worked answer on this page is covered by an automated test. Found a mistake? Tell us.

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