Find what a future sum or stream of payments is worth today.
PV = FV ÷ (1 + r)^n. ₹10,00,000 received in 10 years, discounted at 8%, is worth ₹4,63,193.49 today.
Present value (PV) is the value today of money you will receive in the future. Because money can earn a return, a rupee in the future is worth less than a rupee now. Enter the future amount, any regular payments, the discount rate and the number of years to find the present value.
PV is used to compare investments, value annuities and pensions, and decide between a lump sum and instalments. To go forwards use the Future Value Calculator; for annuity income see the Annuity Payout Calculator.
The calculator applies the standard financial formulas step by step.
| Item | Value |
|---|---|
| Present value of the future sum | ₹4,63,193.49 |
| Present value of the payments | ₹0.00 |
| Total present value | ₹4,63,193.49 |
| Discount factor | 0.463193 |
| Case | Present value |
|---|---|
| ₹10,00,000 in 10 years at 6% | ₹5,58,394.78 |
| ₹10,00,000 in 10 years at 8% | ₹4,63,193.49 |
| ₹10,00,000 in 10 years at 10% | ₹3,85,543.29 |
| ₹10,00,000 in 20 years at 8% | ₹2,14,548.21 |
| ₹10,00,000 in 5 years at 8% | ₹6,80,583.20 |
The current worth of a future sum of money, given a specified rate of return (the discount rate).
PV = FV ÷ (1 + r)^n for a single sum; add PMT × (1 − (1 + r)^−n) ÷ r for regular payments.
The return you could earn on a similar-risk alternative; a higher rate gives a lower present value.
Because money received later cannot be invested in the meantime, so it is worth less today.
Calculate the present value of the instalments and compare it with the lump sum.
NPV is the present value of all inflows minus the initial outflow; PV is just the value of the inflows.
It uses the standard formula: PV = FV ÷ (1 + r)ⁿ + PMT × (1 − (1 + r)^−n) ÷ r The full method and a worked example are shown on this page.
No. The calculator gives estimates for planning and learning. Real offers vary by lender, product and date, so confirm the details with your bank, lender or a qualified adviser before deciding.
Yes. The maths is identical in any currency; only the currency symbol shown in the results differs.
No. Everything is calculated in your browser and nothing you enter is uploaded or saved.
