Present value calculator (how much to invest today)
Find out how much to invest today to reach a future amount, given the rate and term.
Present value is what a future amount is "worth today". Use your investment's expected real rate.
How the calculation works
Present value answers: "what is a future amount worth today?". It's the inverse of compound interest — instead of projecting forward, you bring the value back to the present, discounting the interest.
PV = FV ÷ (1 + i)n
Where FV is the future value, i the rate per period and n the number of periods.
Step-by-step example
To have $100,000 in 10 years, money earning 8%/yr:
- PV = 100,000 ÷ (1.08)¹⁰ ≈ $46,319
So $46,319 invested today becomes $100,000 in 10 years — the other $53,681 is interest.
What it's for
Comparing amounts at different dates fairly: "$50k now" vs "$100k in 10 years" only makes sense once both are brought to the present.
Examples
- $100,000 in 10 years at 8%/yr: PV ≈ $46,319.
- $10,000 in 3 years at 10%/yr: PV = 10,000 ÷ 1.331 ≈ $7,513.
Frequently asked questions
Which rate should I use?
The rate you realistically expect over the period (net of taxes and inflation, for a "real" value).
Why is future money worth less?
Because of opportunity cost: money today could be earning. Inflation also erodes purchasing power.
Present value vs future value?
Future value projects an amount forward with interest; present value does the reverse, bringing it back to today.
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Updated on June 30, 2026 · by Rafael Rossi · Methodology & sources