Formula guide

Present Value Calculator formula

Present value discounts a future amount back to today using a chosen rate of return or discount rate. The higher the rate or the longer the time period, the lower the present value becomes.

How the input values are used

Future value (USD)

The numeric value in USD is used in the calculation; keep units consistent.

Discount rate (%)

The numeric value in % is used in the calculation; keep units consistent.

Years

The numeric value is used in the calculation; keep units consistent.

How to interpret the result

  • The result uses Future value (USD) and Discount rate (%). Change one variable at a time to compare its effect on the outcome.
  • Check whether relevant fees, taxes, and timing assumptions are included before using the estimate.
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