Free calculator
Present value calculator
Find today’s value of a future lump sum and/or level payments at a nominal annual rate you enter—with payments per year and end vs beginning of period timing. Math matches the usual PV identity in Google Sheets and Excel (same periodic rate as our TVM tool when you solve for PV). Not NPV with uneven cash flows, not a CPI inflation index—see methodology and FAQ.
When to use this calculator
Quick discounting checks that mirror PV in a workbook—without building a full model.
- Value a single future receipt or target balance: FV, N, and rate → PV.
- Add equal inflows or outflows each period plus an ending FV (or 0) to match a
PVrow with PMT and TYPE. - Sanity-check monthly vs annual frequency by changing payments per year before you paste assumptions into Sheets or Excel.
Present value is what you would need today, at your stated periodic discount rate, so that a constant payment stream and a final FV replicate the standard lump + annuity identity used in intro finance and in PV.
Inputs this page uses
FV (balance or receipt at the horizon), optional level PMT each period, N periods, nominal annual rate (converted to i = rate ÷ m), payments per year m, and ordinary vs due timing—same family as our TVM solver when the unknown is PV.
Intuition
With PMT = 0, PV = FV ÷ (1 + i)^N. With payments, the page uses the same combined growth identity as PV in Excel—one periodic rate for both the lump and the level stream.
What we do not model on purpose
NPV with different amounts each period, IRR, continuous compounding, changing discount rates, taxes, and CPI-style inflation series belong in other tools or a full model.
Treat every number as illustration—your bank, lease, or tax context may add rules this page skips. To solve for FV, PMT, rate, or N instead, use the TVM calculator. For annuity-first wording (PMT/PV/FV story), open the annuity calculator. For contribution timelines and balance paths, use the compound interest calculator. For purchasing power with an inflation % you choose (not this discount-rate engine), use the inflation calculator.
Google Sheets & Excel
English US/UK names below. Periodic rate is nominal annual ÷ payments per year; TYPE is 0 end, 1 beginning. Replace cell references with yours.
=PV(annualRate/paymentsPerYear,n,pmt,-fv,type)pmt and fv follow Excel cash-flow signs (many workbooks use opposite signs for money in vs out). type is 0 or 1.
=fv/(1+annualRate/paymentsPerYear)^nAlgebraic shortcut when there are no periodic payments—must match PV with pmt = 0 at the same rate and N.
Frequently asked questions
What is present value (PV)?
Present value is the today amount that is economically equivalent to a future value and/or a stream of equal payments, once you pick a periodic interest rate and timing. This page implements the same PV-style math as our TVM tool when PV is the unknown.
What is the formula when there are no payments?
With PMT = 0, PV = FV ÷ (1 + i)^N where i is the periodic rate (nominal annual % ÷ payments per year). That is compound interest run backward from the horizon to today.
How is this different from your TVM calculator?
The TVM page solves for any one of PV, FV, PMT, rate, or N. This page always answers “what is it worth today?” (PV only) with a simpler layout for that task.
When should I use the annuity calculator instead?
Use the annuity page when you want payment-stream framing (solve PMT, PV, or FV with annuity labels). Use this page when you already know you want today’s equivalent (PV) from FV ± PMT.
Is this the same as the inflation calculator?
No. The inflation tool grows or shrinks purchasing power with an inflation % you enter. Here, PV uses your discount rate (investment or loan math)—not a consumer price index.
Can this calculate net present value (NPV)?
Not in v1. NPV sums different cash flows per period (and often subtracts an initial investment). This tool assumes one FV, equal PMT each period, and one rate—same family as PV, not NPV on a full schedule.
Why do my PV/PMT signs look different from Excel?
Excel and Sheets use cash-flow direction (money in vs out). This tool accepts your numbers as typed and applies the same algebra as PV—if a result looks flipped, try reversing a sign on PMT or FV to match your workbook story.
How do I model monthly discounting?
Set payments per year to 12 and enter N as months (e.g. 60 for five years). The periodic rate becomes annual % ÷ 12, like rate/12 in common loan formulas.
Which spreadsheet function matches this page?
Use PV with rate ÷ m, N, PMT, FV, and TYPE (end vs beginning). The spreadsheet cards show English patterns; localized Excel uses Insert function to match your language pack.
Is this financial, tax, or lending advice?
No. It is a free educational calculator—not a quote, not a suitability recommendation, and not a substitute for qualified professionals when decisions have money on the line.