HaatBeat Calculators

Present value calculator

Work out what an amount due in the future is worth today.

ReviewedAny currency
₹
The amount due at the future date.
% a year
The yearly rate used to discount. 0% to 50%.
years
Decimals allowed, e.g. 2.5. Up to 100 years.
Present value
₹5,58,394.78
5.58 lakh

₹10,00,000.00 in 10 years, discounted at 6% a year, is worth about ₹5,58,394.78 today.

From future to present
Present value₹5,58,394.78
Discount₹4,41,605.22
Future amount₹10,00,000.00
Illustrative. Discounts one future amount with yearly compounding at a fixed rate you choose.

How it's calculated

PV = FV ÷ (1 + r)^t

FV is the future amount, r is the yearly discount rate as a decimal and t is the number of years. It is compound interest in reverse.

Assumptions

  • One future amount, discounted with yearly compounding.
  • The discount rate stays the same for the whole period.

Worked example

1,000 received in one year, discounted at 10% a year, is worth about 909.09 today.

Questions

Which discount rate should I use?

People often use the return they could get elsewhere, or expected inflation to see a value in today’s prices. Try a few rates to see the range.

Why is money later worth less than money now?

Money you have now can earn a return or buy things before prices rise, so a later amount has to be larger to be worth the same.

How does this relate to compound interest?

It is the reverse: compound interest takes an amount today forward in time; present value brings a future amount back to today.

Sources

Last reviewed 1 October 2026 by Sachin. How we check calculators.