Present Value Calculator
Calculate the present value of future money or periodical annuity payments.
Present Value of Future Money
Present Value:
Total Interest:
Present Value of Periodical Deposits
Present Value:
Future Value:
Total Principal:
Total Interest:
The time value of money
Present value answers the question "how much would I need today to reach a certain amount in the future, given a specific rate of return?" — it's the mirror image of a future value / compound interest calculation. The annuity version does the same thing for a stream of equal periodic payments rather than a single lump sum, which is how pension payouts, loan payments, and lottery annuity structures are typically valued.
Frequently asked questions
Why is present value always less than future value? Because money available today can be invested to grow, a dollar today is worth more than a dollar received later — present value quantifies exactly how much less, based on the discount rate and time period used.
What does "PMT at the beginning of each period" change? It shifts the annuity from an "ordinary annuity" (payments at period end) to an "annuity due" (payments at period start), which gives each payment one extra period of growth — resulting in a slightly higher present and future value for the same payment amount.
What discount rate should I use? Use a rate that reflects the return you could otherwise earn on your money (an opportunity cost), or the rate specified by a financial contract if you're valuing a specific instrument like a bond or annuity.