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Finance Calculators

Present Value Calculator

Verified formula Updated Jun 2026 Private — runs on your device

Enter details
₹
%
10 years
1 years50 years
Verified formula Private

Present value

₹1,00,000

Total discount
₹1,15,892

For general information only — not financial, tax, legal or medical advice. Verify before you rely on it.

How to use the Present Value Calculator

The Present Value Calculator works out your present value, along with 1 related figure in an instant. Enter future amount, discount rate (p.a.) and number of years and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.

  1. Enter the future amount.
  2. Enter the discount rate (p.a.).
  3. Set the number of years.
  4. Read off your present value, together with total discount — the calculator updates automatically, with no button to press.

Formula

The Present Value Calculator uses the formula:

Present value = Future amount ÷ (1 + Discount rate (p.a.) ÷ 100)^(Number of years)

Worked example

For example, with future amount of ₹215,892, discount rate (p.a.) of 8% and number of years of 10 years, the present value is ₹1,00,000.

Inputs used
Future amount ₹215,892
Discount rate (p.a.) 8%
Number of years 10 years
Results
Present value ₹1,00,000
Total discount ₹1,15,892

Results are estimates for educational use, not professional advice.

Key terms explained

Present value
Today's worth of money you will receive in the future, discounted for the time value of money.

Frequently asked questions

Present value is today's worth of money you will receive in the future, after discounting it for the time and return you give up. It uses PV = FV ÷ (1 + r)ⁿ.

Because money you have now can be invested to earn returns. A rupee in ten years is worth less than a rupee today, which is the time value of money.

Use the return you could otherwise earn, or your required rate of return. A higher discount rate lowers the present value.

It underpins investment appraisal, bond pricing and comparing offers paid at different times, letting you compare cash flows on a like-for-like basis.

The Present Value Calculator uses the formula: Present value = Future amount ÷ (1 + Discount rate (p.a.) ÷ 100)^(Number of years). For example, with future amount of ₹215,892, discount rate (p.a.) of 8% and number of years of 10 years, the present value is ₹1,00,000.

Enter the future amount. Enter the discount rate (p.a.). Set the number of years. Read off your present value, together with total discount — the calculator updates automatically, with no button to press.

Inflation and the Time Value of Money, Explained

Why a rupee today is worth more than a rupee tomorrow — how inflation erodes money, present versus future value, real versus nominal returns, why cash loses value, and how NPV guides decisions.

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