Present Value Calculator
Present value discounts a future amount back to today: 10 000 received in 5 years at 8 % is worth 6,805.83 now.
6805.83197033753
Full answer, then cut to fewer decimals (not rounded):
- 6805.83197033753
- 6805.8319703375
- 6805.831970337
- 6805.83197033
- 6805.8319703
- 6805.831970
- 6805.83197
- 6805.8319
- 6805.831
- 6805.83
- 6805.8
- Discount factor 1/(1+r)ⁿ
- 0.6805832
- Discount (FV − PV)
- 3,194.17
Step-by-step solution
- PV = FV ÷ (1 + r)ⁿ
- PV = 10,000.00 ÷ (1 + 8 %)^5
- PV = 10,000.00 ÷ 1.4693281 = 6,805.83
Present Value Formula
PV = FV ÷ (1 + r)ⁿ
FV future value, r discount rate per period, n number of periods
Worked Example
10 000 to be received in 5 years, discounted at 8 %:
- PV = FV ÷ (1 + r)ⁿ
- PV = 10,000.00 ÷ (1 + 8 %)^5
- PV = 10,000.00 ÷ 1.4693281 = 6,805.83
Discount (FV − PV): 3,194.17
Choosing the rate and the number of periods
Present value discounts a future amount back to today: PV = FV ÷ (1 + r)ⁿ. The rate and the number of periods must use the same time unit, so a 12 % annual rate over 3 years compounded monthly is r = 1 % and n = 36. A higher discount rate or a longer wait lowers the present value. In capital budgeting the rate is usually the required return or cost of capital; in personal finance it is the return you could earn elsewhere with similar risk.
Frequently asked questions
What is a discount factor?
1 ÷ (1 + r)ⁿ, the present value of 1 received after n periods. At 8 % over 5 years it is 0.680583.
How do I calculate present value in Excel?
Use =PV(rate, nper, pmt, fv): for a single amount, =PV(8%, 5, 0, -10000) returns 6805.83.
How do I find the present value of regular payments?
Use the annuity formula PV = PMT × [1 − (1 + r)⁻ⁿ] ÷ r, or the annuity calculator.
Sources
Last reviewed: . Factors are stored exactly and computed with 50-digit decimal arithmetic. See how we verify conversion factors.
Cite this page
APA
Scientific Converters. (2026, October 15). Present Value Calculator. Retrieved October 25, 2026, from https://scientificconverters.com/calculators/present-value-calculator/
IEEE
Scientific Converters, "Present Value Calculator," scientificconverters.com. Accessed: Oct. 25, 2026. [Online]. Available: https://scientificconverters.com/calculators/present-value-calculator/