Moneyzine
/Investment Guides /Present Value Calculator

Present Value Calculator

Moneyzine Editor
Author: 
Moneyzine Editor
2 mins
October 4th, 2023
Advertiser Disclosure

This calculator provides the user with the present value of an investment. That is to say, the value of the investment stated in today's dollars. (Also known as current or nominal dollars, since the calculator does not adjust for inflation.) The calculator only requires three inputs to calculate the present value: the future value of the investment, the total number of time periods, and the discount rate.

Inputs

$

Result

Present Value$9,931.10

Calculator Definitions

The variables used in our online calculator are defined in detail below, including how to interpret the results.

Future Value of the Investment ($)

This is the future value of the investment. For example, if you want to know the value of $100,000 received 10 years from now, then the future value would be $100,000.

Number of Time Periods

This is the number of payment periods for the investment. For example, if you're going to receive $100,000 in ten years, then the Number of Time Periods would be 10. The time period used in this section of the calculator must be the same time period used for the Discount Rate.

Discount Rate (% / Time Period)

This is the rate at which you want to discount the value of the investment received in the future to its present value. For example, if you want to discount the future value by 10% each time period, then the discount rate is 10%. The time used for the Discount Rate value (10% per year) must be consistent with the Number of Time Periods (years).

Present Value of Investment ($)

This is the present value of the investment, which takes into consideration the time value of money. This value discounts the Future Value by the Discount Rate (interest rate) specified. For example, $100,000 received 10 years from now, discounted at a rate of 7%, would have a present value of $50,834.93.


Disclaimer: These online calculators are made available and meant to be used as a screening tool for the investor. The accuracy of these calculations is not guaranteed nor is its applicability to your individual circumstances. You should always obtain personal advice from qualified professionals.

Related Content

Are You a Financial Disaster? The Real State of Your Finances
Have you ever heard the saying, “If you don’t have a goal, then you’ll wind up hitting it with amazing accuracy.”? In other words, if you have no idea where you want to be in your future life, then it really doesn’t matter what you do because wherever you end up will match your goal…which apparently was never important enough for you to think about in the first place.
March 13th, 2024
DRIP Brokers: Best Brokers for Dividend Investing for March 2024
Reinvesting dividends could mean compound growth for your portfolio. But reinvesting them manually can be a hassle. This is why you could benefit from a dividend reinvestment plan (DRIP).
March 12th, 2024
11 Steps to Transform Your Finances (For Good This Time!!)
The money comes in…the money goes out…and at the end of each month you have very little to show for all your efforts. Then, after buckling down for a bit and saving here and there, it feels like you’ve gained a little traction…until another unexpected bill comes along and takes your bank account down to nothing (or probably more likely, racks your credit card back up to the max instead of down to zero like you were fighting for). It’s time to change this. Now is the time to transform your finances.
March 11th, 2024
How To Invest in Real Estate Without Becoming a Landlord
We all know that in order to build wealth and prepare for retirement, investing is the key. However, it can be hard to figure out what to invest in and how to put your money to good use. One of the most talked about ways to build wealth is owning property and being a landlord to bring in passive income. But what if you don’t want to do that? You can still invest in real estate!
March 6th, 2024
Investing In Nature: The Closest You'll Get To Your Money Growing On Trees
ESG (Environmental, Social, and Governance) has become a polluted word for many traders and investors - but that doesn't mean it's going completely away. Nor does that mean you can't profit from nature or sustainable practices. But there are some opportunities in the regenerative ag, conservation, and green real estate spaces.
February 29th, 2024

Contributors

Moneyzine 2024. All Rights Reserved.