Present Value Calculator
Calculate present value, future value, and net present value (NPV). Essential tools for investment decisions and financial planning.
Present Value
What is a future amount worth today?
Present Value answers: "How much do I need to invest today to have $100,000 in 10 years at 7% return?"
Present Value Today
$ 0$100,000 in 10 years discounted at 7%
Future Value
$ 0Present Value
$ 0Discount Amount
$ 0Discount %
0%Present Value Over Time
How present value increases as you approach the future date
Results are for informational purposes only and do not constitute financial advice. Actual returns may vary due to market conditions, taxes, and fees. Read our full disclaimer.
Present Value vs Future Value
Present value (PV) and future value (FV) are two sides of the same coin. Future value calculates what a sum of money today will be worth in the future given a certain return rate. Present value works in reverse — it discounts a future sum back to today's dollars, asking: "What is that future amount worth to me right now?" Both concepts are essential for comparing investment opportunities and making sound financial decisions.
What is Net Present Value?
Net Present Value (NPV) is the most widely used tool in corporate finance for evaluating investments. It calculates the total present value of all future cash flows from a project, minus the initial investment. A positive NPV means the investment creates value — it returns more than the required rate of return. A negative NPV means it destroys value. The decision rule is simple: accept projects with positive NPV, reject those with negative NPV.
The Time Value of Money
All three calculations — PV, FV, and NPV — are based on the time value of money: the principle that a dollar today is worth more than a dollar in the future. This is true for three reasons: money today can be invested to earn returns, inflation reduces purchasing power over time, and future cash flows carry uncertainty. The discount rate used in present value calculations reflects these factors — higher discount rates represent higher risk or opportunity cost.