Present Value Calculator

Money received in future is worth less than the same money today, because today’s money could be invested in the meantime. Present value tells you what a future amount, or a series of future payments, is worth now at a chosen rate of return.

An equal amount received at the end of every month or year.
The return you could earn elsewhere.
Compounding and payments
Results update as you type.

Present value

₹5,08,349

about 5.08 lakh

Discount factor
0.508349₹1 in 10 years is worth this today
Total future money
₹10,00,000

About this calculator

It helps compare offers that pay at different times, such as a lump sum now against a larger amount later, or an insurance payout against investing the premiums.

How to use it

  1. Enter the future amount and any regular payment.
  2. Enter a discount rate: the return you could earn elsewhere.
  3. Enter how many years away it is, and yearly or monthly.
  4. Read the present value.

The formula

PV = FV ÷ (1 + i)n + PMT × [1 − (1 + i)^−n] ÷ i
FV
the amount received in future
PMT
any equal payment received at the end of each period
i
the discount rate per period
n
the number of periods

Worked example

₹10 lakh received in 10 years

  1. At a discount rate of 7%: 10,00,000 ÷ 1.0710 = ₹5,08,349.
  2. So ₹10 lakh in 10 years is worth about the same as ₹5.08 lakh today if you can earn 7% meanwhile.

What the result means

A higher discount rate or a longer wait makes the present value smaller. If you are offered less than the present value today, waiting is better; if more, taking the money now is better.

Assumptions

  • A constant discount rate.
  • Payments arrive at the end of each period.

Limitations

  • Inflation and taxes are not separated; use a discount rate that reflects them if needed.

Frequently asked questions

What discount rate should I use?

The return you could realistically earn on similar-risk money, for example an FD rate for safe money.

What is the discount factor?

What ₹1 received in future is worth today. Multiply any future amount by it to get its present value.

How is present value used in real decisions?

To compare a lump sum now with payments later, for example a pension commutation, an insurance maturity value, or a seller offering a discount for paying upfront.

For information only. This calculator gives estimates based on the figures you enter and the assumptions listed above. It is not financial advice. Actual amounts depend on the lender’s or institution’s terms, fees, rounding and rate changes. Please confirm with them before you decide.

Last reviewed on 1 October 2026. Found a mistake? Tell us.