Present Value of Future Amount

You can use this calculator to calculate the present value of an amount to be received in the future. The basic principle is that the same amount of money is more valuable today than it will be in the future because today's dollars can be invested to make more money.

To open this calculator, click Calculators in the toolbar, and then click Other Investment > Present Value of Future Amount in the left panel.

You can export the data as a PDF file or clear all data that you entered. For more information, see Financial calculators.

Example

An individual is offered $2,000 that she will receive in seven years. What is it worth in today's dollars if she can earn 10% on investments?

Field Input
Future amount $2,000
Years of discounting 7
Annual discount rate 10%

In this example, $2,000 seven years from today is worth $1,026.32 in today's dollars.

Note: The discount rate is a rate of return that the individual could earn on today's dollars.

Internal notes


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