// PRESENT VALUE CALCULATOR

Present Value Calculator

Discount a future amount back to today's value using a chosen discount rate.

// INPUTS

FUTURE VALUE

₹

DISCOUNT RATE (%)

YEARS UNTIL RECEIPT (years)

// OUTPUT

PRESENT VALUE

₹46,319.35

DISCOUNT53.68%

GAP₹53,681

// FORMULA

PV = FV / (1 + r) ^ n

r is the discount rate as a decimal, n is the number of years.

// EXAMPLE

// WORKED OUT

₹1,00,000 received in 10 years, discounted at 8%:
  PV = 100000 / (1.08) ^ 10
     = 100000 / 2.1589
     = ₹46,319

// WHAT THIS MEANS

Present value flips compounding around: instead of asking what a sum becomes, you ask what it is worth today. The same ₹100 promised next year is worth less than ₹100 in hand — because you could have invested ₹100 today and had more next year. The 'discount rate' is whatever return you could have earned instead.

// FAQ

What discount rate should I use?+

Pick the return you would have realistically earned on the same money over the same period. Lower-risk goals use lower rates; higher-risk projects use higher ones.

Why is the present value so much lower than the future value?+

Because compounding works in both directions. A small annual rate, repeated over many years, builds a large gap.