Present & Future Value Calculator
Find what a lump sum today will be worth in the future, or what a future sum is worth today.
About the Present & Future Value Calculator
The Present and Future Value Calculator finds what a lump sum today will grow to (future value), or what a future amount is worth today (present value), given an annual rate and a number of years.
Future value equals present value times (1 + rate) raised to the number of years. Present value is the reverse: future value divided by (1 + rate) to the years. The idea behind it is the time value of money, which says a rupee or dollar today is worth more than one received later because it can earn a return. Choosing the rate is the hardest part; it should reflect expected return or your required rate of return.
How to use it
- Choose present value or future value.
- Enter the amount.
- Enter the annual rate and years.
- Read the result.
Tips and good to know
- Use real rates to account for inflation.
- Test several rates.
- It handles single payments; regular deposits need a different calculation.
Frequently asked questions
What is a discount rate?
The rate used to bring future money to today's value.
Does it include regular contributions?
No.
Can I use it for loans?
Use the EMI Calculator.