Business & investing
Present Value Calculator
Money you receive later is worth less than the same amount today, because today's money could be earning a return. Present value tells you what a future sum or a series of payments is worth right now.
Your result will appear here.
How it's calculated
The future lump sum is divided by (1 + r)^n. Each payment is discounted the same way for its own period, and those values are added up.
PV = FV ÷ (1 + r)^n + PMT × (1 − (1 + r)^−n) ÷ r
How to do it in Excel
=PV(6%, 10, 0, -50000)- Returns 27,919.74 for the default example.