How is present value different from future value?

Present value works backwards from a future sum to today. Future value works forward from today to a future balance.

Does this include inflation?

No. You can use an inflation rate as your discount rate if you want a purchasing-power estimate.

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Present Value Calculator

Work backwards from a future target to estimate what that amount is worth today. Use it for savings goals, investment planning, retirement targets and future-value comparisons.

Future value targetAnnual discount or return rate (%)

Years until target

Amount needed today

$ —

Future target

$ —

Discounted growth gap

$ —

Present value formula

PV = FV / (1 + r)ⁿ

FV is the future value, r is the annual discount rate and n is the number of years. A higher discount rate or longer timeline lowers the present value.

Example

If you want $100,000 in 10 years and assume a 7% annual return, the present value is about $50,835. That means $50,835 invested today at 7% could grow to roughly $100,000 over 10 years.

FAQ

What is present value?

Present value is the amount a future sum is worth today after discounting it by an assumed rate.

Can I use inflation as the rate?

Yes, if the goal is to estimate purchasing power rather than investment growth.

Is this financial advice?

No. This is an educational calculator and does not include taxes, fees or personal risk.