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Present Value Calculator

Discounts a single future amount back to today's value at a constant annual rate and compounding frequency, and reports the discount factor and the amount of discount.

When to use

You need to know what a future sum is worth today, e.g. to compare a lump sum now against a payment later, or to price a zero-coupon bond.

Do not use when: You need the value of a stream of payments (use future-value for accumulation, or a dedicated annuity/NPV tool), or you want to grow money forward (use future-value).

Formula

i = annual_rate_percent/100 / n_per_year; n = n_per_year × years; present_value = future_value / (1 + i)^n; discount_factor = (1 + i)^−n

Inputs

Parameter	Type	Unit	Required	Description
`future_value`	number		yes	Amount to be received or paid in the future. Range: ≥ 0, ≤ 1000000000000
`annual_rate_percent`	number	%	yes	Nominal annual rate of return or cost of capital in percent. Range: ≥ 0, ≤ 100
`years`	number	years	yes	Time until the future amount is due. Range: > 0, ≤ 200
`compounding_frequency`	enum: annually \| semiannually \| quarterly \| monthly \| weekly \| daily		default annually	How often interest is credited: n = 1, 2, 4, 12, 52 or 365 periods per year.

Outputs

Output	Type	Unit	Description
`present_value`	number		future_value / (1 + i)^n.
`discount_factor`	number		(1 + i)^−n, the multiplier applied to the future value.
`discount_amount`	number		future_value − present_value (interest forgone).
`number_of_periods`	number		n = periods per year × years.
`periodic_rate_percent`	number	%	i = annual rate / periods per year.

Example

10,000 in 10 years at 5 % (annual): {"future_value":10000,"annual_rate_percent":5,"years":10,"compounding_frequency":"annually"} → {"present_value":6139.13,"discount_factor":0.613913,"discount_amount":3860.87,"number_of_periods":10}

100,000 in 20 years at 6 % (annual): {"future_value":100000,"annual_rate_percent":6,"years":20} → {"present_value":31180.47,"discount_factor":0.311805}

GET https://tttkmbb.com/api/v1/calculate/present-value?future_value=10000&annual_rate_percent=5&years=10&compounding_frequency=annually

Machine access

API: GET https://tttkmbb.com/api/v1/calculate/present-value (query parameters) or POST with a JSON body {"inputs": {...}}
Schema: https://tttkmbb.com/api/v1/calculators/present-value · Markdown: https://tttkmbb.com/finance/present-value.md · JSON definition: https://tttkmbb.com/finance/present-value.json
MCP: server https://tttkmbb.com/mcp, tool run_calculator with calculator_id="present-value"
OpenAPI operationId: calculate_present_value
Freshness: static. Authentication: none. Rate limit: fair use (see rate limits).

Sources

Investopedia – Present Value (PV): Formula and Calculation (reference)
Wikipedia – Present value (reference)

FAQ

Which discount rate should I use?

The return you could earn on an alternative of similar risk: a savings or bond yield for safe cash flows, a higher required return for risky ones.

Does compounding frequency change the answer?

Slightly: more frequent compounding at the same nominal rate discounts more heavily. 10,000 in 10 years at 5 % is 6,139.13 with annual and 6,071.61 with monthly compounding.

Related calculators

Future Value Calculator — Grow a present amount forward instead.
Inflation Calculator — Discount by inflation to get purchasing power rather than investment value.