Finance Calculators
Present Value Calculator
Present value discounts a future sum back to today, and future value compounds a sum today forward. Enter an amount with the annual rate, the term and the compounding frequency, and this calculator returns both values plus the rate of interest earned or discounted.
Calculator
Formula Used
PV = FV / (1 + r/n)^(n·t) and FV = PV × (1 + r/n)^(n·t), where PV is the present value, FV the future value, r the annual rate, n the compounds per year and t the years. For continuous compounding the factor is e^(r·t).
About This Calculator
What It Does
Convert between the present value and the future value of a single sum of money at a nominal annual rate. The tool runs the compound-interest equation in both directions, with a compounding frequency from annual to continuous, and reports the difference as the interest earned or the discount taken.
Worked Example
A future value of 10,000 in ten years at 5% compounded monthly is worth 6,071.61 today: 10,000 ÷ (1 + 0.05/12)^120. Compounding 6,071.61 forward at the same rate returns 10,000, and the difference is 3,928.39.
Real-World Usage
Work out how much to set aside today to reach a savings goal, compare an investment's future value with its cost today, price a lump sum offered in place of future payments, or see what a long holding period does to money.
Local Context
Present value and future value come from the time value of money and are the same idea everywhere. The compounding convention still varies by market — interest is commonly quoted as an annual rate and paid monthly, while some products accrue daily or continuously — so set the frequency to match the product rather than a default.
Last reviewed: October 2026.
Frequently Asked Questions
What is the difference between present value and future value?
Present value is what a future sum is worth today after discounting at a given rate; future value is what a sum today grows to over the term. They are the same equation run in opposite directions.
Which rate and frequency should I use?
Use the annual nominal return or discount rate you expect, and set the compounding frequency to match the product — monthly for most savings and loan products, annual for a simple illustration, or continuous for the theoretical limit.
Why does a higher rate lower the present value?
A higher rate means money grows faster, so you need less of it today to reach the same future sum. Discounting at a higher rate therefore returns a smaller present value.