Present value
Present value: use future lump sum, annual discount rate, time until payment. Review the formula, worked example and calculation steps.
Inputs
Use the units shown—
Enter your values and select Calculate.
Formula & explanation
PV = FV/(1+r/100)ᵗ
Variables & units
- Future lump sum
- currency · minimum 0, maximum 1000000000000
- Annual discount rate
- % · minimum 0, maximum 100
- Time until payment
- years · minimum 0, maximum 100
Worked example
110 due in one year discounted at 10% has present value 100.
Assumptions
Single lump sum, annual effective discount rate. No intermediate cash flows.
Formula version 1.0.0. JavaScript floating-point arithmetic applies. Results display up to 6 decimal places; stored values retain available precision. Use the units shown.
Practice with an example
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