Discount one amount to time zero
Present value divides a future amount by the accumulated growth factor. PV = FV/(1+r/m)^(m×t). The present-value factor is the multiplier that converts one future currency unit into its current modeled equivalent. It depends on both the discount rate and the distance to the payment.
A reversible example
Discount $1,100 for one year at a 10% annual rate. The factor is 1/1.10, or approximately 0.909091. Multiplying by $1,100 gives $1,000. Growing that $1,000 forward at the identical rate recovers $1,100. Changing the rate convention in only one direction breaks the comparison.
Choose a meaningful discount assumption
The calculator cannot choose a discount rate for you. It calculates the consequences of the rate you enter. This page handles a single later payment. Use the annuity page for equal payments, cash-flow present value for unequal payments, or NPV when an initial project cost must be subtracted separately.
Questions about this calculation
How can I check the inputs behind the result?
Open “Show calculation & assumptions” for the formula and timing conventions, then inspect the breakdown. Export CSV to keep the last calculated inputs and numerical results together.
Does this include taxes or changing market returns?
No tax calculation or variable market-return path is included. The task-specific assumptions above describe the scope. Calculated values are conditional on the inputs, not personalized recommendations.
Learn more
Start with the step-by-step future value formula guide.
Open the formula guide →How to calculate future value · Spreadsheet calculations · All learning guides
Use these figures to explore assumptions. Actual interest, returns, fees, taxes and purchasing power can differ.