Future & Present Value Calculator
The time value of moneyis the foundation of nearly every finance decision: a dollar today is worth more than a dollar tomorrow, because today’s dollar can earn a return. This calculator works it both ways — the future value of money you have now, or the present valueof a sum you’ll receive later.
How this calculator works
Both directions use the same compounding relationship over n years at rate r:
FV = PV × (1 + r)ⁿ
Rearranged to discount a future amount back to today:
PV = FV ÷ (1 + r)ⁿ
- Future valueanswers “what will this grow to?” — useful for investing and savings.
- Present valueanswers “what is a future payout worth today?” — the basis for valuing pensions, lump-sum vs annuity choices, and any “$X in N years” offer. Here the rate is a discount rate.
This is a single lump sum
This calculator values one amount. For a stream of regular contributions, use the compound interest or savings goal calculators, which add an annuity component on top of this core formula.
Frequently asked questions
- What's the difference between future and present value?
- Future value grows a sum forward in time at a return rate; present value discounts a future sum back to today at a discount rate. They're inverses of the same compounding formula.
- When would I use present value?
- Whenever you compare money across time — e.g. a lump-sum vs annuity pension choice, a 'win $X in 20 years' offer, or deciding what a future payout is really worth now. A higher discount rate makes future money worth less today.
- What discount rate should I use?
- Often your expected investment return or opportunity cost of capital — the return you'd otherwise earn. There's no single right number; test a range to see how sensitive the present value is to it.