{"success":true,"version":"v1","request":{"tool":"get_calculator_schema","calculator_id":"present-value"},"result":{"entity_type":"calculator","id":"present-value","calculator_id":"present-value","canonical_url":"https://tttkmbb.com/finance/present-value","name":"Present Value Calculator","title":"Present Value Calculator – Discount a Future Amount at a Compound Rate","category":"finance","category_name":"Finance","tool_name":"calculate_present_value","featured_mcp_tool":false,"description":"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.","use_when":"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).","inputs":[{"name":"future_value","label":"Future value","type":"number","required":true,"min":0,"max":1000000000000,"description":"Amount to be received or paid in the future.","example":10000},{"name":"annual_rate_percent","label":"Annual discount rate","type":"number","unit":"%","required":true,"min":0,"max":100,"description":"Nominal annual rate of return or cost of capital in percent.","example":5},{"name":"years","label":"Years","type":"number","unit":"years","required":true,"max":200,"exclusive_min":0,"description":"Time until the future amount is due.","example":10},{"name":"compounding_frequency","label":"Compounding frequency","type":"enum","required":false,"default":"annually","values":[{"value":"annually","label":"Annually (1×/year)","aliases":["yearly","annual","1"]},{"value":"semiannually","label":"Semiannually (2×/year)","aliases":["semi-annually","half-yearly","2"]},{"value":"quarterly","label":"Quarterly (4×/year)","aliases":["4"]},{"value":"monthly","label":"Monthly (12×/year)","aliases":["12"]},{"value":"weekly","label":"Weekly (52×/year)","aliases":["52"]},{"value":"daily","label":"Daily (365×/year)","aliases":["365"]}],"description":"How often interest is credited: n = 1, 2, 4, 12, 52 or 365 periods per year.","example":"annually"}],"outputs":[{"name":"present_value","label":"Present value","type":"number","decimals":2,"description":"future_value / (1 + i)^n."},{"name":"discount_factor","label":"Discount factor","type":"number","decimals":6,"description":"(1 + i)^−n, the multiplier applied to the future value."},{"name":"discount_amount","label":"Discount","type":"number","decimals":2,"description":"future_value − present_value (interest forgone)."},{"name":"number_of_periods","label":"Number of periods","type":"number","decimals":2,"description":"n = periods per year × years."},{"name":"periodic_rate_percent","label":"Rate per period","type":"number","unit":"%","decimals":6,"description":"i = annual rate / periods per year."}],"input_schema":{"type":"object","properties":{"future_value":{"description":"Amount to be received or paid in the future.","type":"number","minimum":0,"maximum":1000000000000,"examples":[10000]},"annual_rate_percent":{"description":"Nominal annual rate of return or cost of capital in percent. Unit: %.","type":"number","minimum":0,"maximum":100,"examples":[5],"x-unit":"%"},"years":{"description":"Time until the future amount is due. Unit: years.","type":"number","maximum":200,"exclusiveMinimum":0,"examples":[10],"x-unit":"years"},"compounding_frequency":{"description":"How often interest is credited: n = 1, 2, 4, 12, 52 or 365 periods per year.","type":"string","enum":["annually","semiannually","quarterly","monthly","weekly","daily"],"default":"annually","examples":["annually"]}},"additionalProperties":false,"required":["future_value","annual_rate_percent","years"]},"output_schema":{"type":"object","properties":{"present_value":{"description":"future_value / (1 + i)^n.","type":"number"},"discount_factor":{"description":"(1 + i)^−n, the multiplier applied to the future value.","type":"number"},"discount_amount":{"description":"future_value − present_value (interest forgone).","type":"number"},"number_of_periods":{"description":"n = periods per year × years.","type":"number"},"periodic_rate_percent":{"description":"i = annual rate / periods per year. Unit: %.","type":"number","x-unit":"%"}}},"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","sources":[{"name":"Investopedia – Present Value (PV): Formula and Calculation","url":"https://www.investopedia.com/terms/p/presentvalue.asp","type":"reference","retrieved_at":"2026-09-23"},{"name":"Wikipedia – Present value","url":"https://en.wikipedia.org/wiki/Present_value","type":"reference","retrieved_at":"2026-09-23"}],"freshness":{"type":"static","max_age_seconds":null,"note":"Deterministic formula with fixed constants; results never go stale. Inputs supplied by the caller determine the output."},"examples":[{"name":"10,000 in 10 years at 5 % (annual)","inputs":{"future_value":10000,"annual_rate_percent":5,"years":10,"compounding_frequency":"annually"},"expected":{"present_value":6139.13,"discount_factor":0.613913,"discount_amount":3860.87,"number_of_periods":10},"url":"https://tttkmbb.com/api/v1/calculate/present-value?future_value=10000&annual_rate_percent=5&years=10&compounding_frequency=annually"},{"name":"100,000 in 20 years at 6 % (annual)","inputs":{"future_value":100000,"annual_rate_percent":6,"years":20},"expected":{"present_value":31180.47,"discount_factor":0.311805},"url":"https://tttkmbb.com/api/v1/calculate/present-value?future_value=100000&annual_rate_percent=6&years=20"}],"faq":[{"q":"Which discount rate should I use?","a":"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."},{"q":"Does compounding frequency change the answer?","a":"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."}],"tags":["present value","pv formula","discounting","discount factor","time value of money"],"related":[{"calculator_id":"future-value","reason":"Grow a present amount forward instead."},{"calculator_id":"inflation","reason":"Discount by inflation to get purchasing power rather than investment value."}],"links":{"html":"https://tttkmbb.com/finance/present-value","markdown":"https://tttkmbb.com/finance/present-value.md","json":"https://tttkmbb.com/finance/present-value.json","api":"https://tttkmbb.com/api/v1/calculate/present-value","schema":"https://tttkmbb.com/api/v1/calculators/present-value","openapi":"https://tttkmbb.com/openapi.json","mcp":"https://tttkmbb.com/mcp"},"version":"v1","updated_at":"2026-09-23"},"timestamp":"2026-09-23T23:23:13Z"}