Present Value / Future Value Calculator
Initial lump sum amount
Made once per compounding period: monthly compounding means a monthly payment. In present value mode, the result is the lump sum needed today alongside these payments.
Time Value of Money Formulas
Future Value: FV = PV(1 + r)^n
Present Value: PV = FV / (1 + r)^n
FV of Annuity: PMT × [((1 + r)^n - 1) / r]
PV of Annuity: PMT × [(1 - (1 + r)^-n) / r]
Present value with payments: PV = (FV − FV of payments) / (1 + r)^n
Where: r = annual rate ÷ compounding periods per year, n = years × compounding periods per year
Translate money across time horizons by converting present value to future value (and reverse) under chosen discount rates.
Formula
Worked Example
At 6% annual growth over ten years, today's $5,000 compounds to roughly $8,954.
Frequently Asked Questions
When is present value most useful?
Present value is essential when comparing future cash flows against current alternatives or investment hurdles.
Should rate include inflation?
Use nominal rates for nominal cash-flow planning and real rates for inflation-adjusted purchasing-power analysis.