Present Value Calculator guide
Present Value Calculator: What Future Money Is Worth Today
Use our present value calculator to work out what a future sum, or a series of payments, is worth in today's money.
By the AllCalculator editorial teamUpdated 16 October 20261 min read
£10,000 in ten years' time is worth less than £10,000 today, because you could invest today's money or because inflation erodes it. Our Present Value Calculator works out how much less.
How to use the calculator (Present Value Calculator)
- Enter the future amount.
- Enter the discount rate: the return you could earn, or inflation.
- Enter how many years away it is.
- Optionally, add a regular yearly payment.
The formula
PV = FV ÷ (1 + r)ᵗ
For a series of yearly payments: PV = PMT × (1 − (1 + r)⁻ᵗ) ÷ r.
A worked example
With the calculator's default settings, £10,000 in 10 years, discounted at 5%, is worth £6,139 today.
Frequently asked questions
What discount rate should I use?
The return you could get elsewhere at similar risk, or the inflation rate to see the value in today's prices.
What's the opposite of present value?
Future value. See our Future Value Calculator.
Sources and further reading
Links open official and independent websites in a new tab.
This guide is general information to help you understand your options. It isn't financial, tax, legal or building advice and doesn't take your personal circumstances into account. Figures were checked when the guide was last updated and can change, so confirm anything important with GOV.UK, HMRC, a regulated adviser or a qualified tradesperson.