Present Value of a Lump Sum Calculator
Discount a future sum back to today's value.
Result
How to use
- Enter your values in the fields above.
- Press Calculate to see your result instantly.
- Use the Share button to copy a link to your result.
About this calculator
The present value of a lump sum answers a core question in finance: what is a single future payment worth in today's money? The formula, PV = FV / (1 + r)^n, discounts a future amount (FV) back to the present using a discount rate (r) over a number of periods (n) — reflecting the simple fact that money available today is worth more than the same amount received years from now, because today's money can be invested and grow in the meantime.
This calculation underlies capital budgeting decisions, bond and annuity pricing, lawsuit settlement structuring, and comparing lottery jackpot options (lump sum versus payments over time). This calculator takes a future amount, a discount rate, and a number of periods and returns what that future sum is worth right now.
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