Present value (P)
—
- P
- present value
- F
- single future payment
- i
- discount rate per period
- n
- number of periods
Worked example · $100 due in 7 years at 5% is worth $71 today.
Eq.02 · Single payment
Present Value Calculator
Use this present value calculator to find present worth — discount a single future payment F back to what it is worth today using P = F(1 + i)^-n.
P = F (1 + i)^-n
How to use this calculator
- 1 Enter the future payment as F (the amount arriving later)
- 2 Enter the discount rate per period as i and the number of periods as n
- 3 Read P — what that future payment is worth today
Examples
$100 due in 7 years
This present value example matches the calculator's default inputs — a single future payment discounted back to today.
Given: F = $100, i = 5% per year, n = 7 years
Result: P = $71
A $50,000 payment due in 10 years
Present worth calculations are common for larger future payments, like an inheritance or settlement due years from now.
Given: F = $50,000, i = 4% per year, n = 10 years
Result: P = $33,778
A $1,000,000 payout in 20 years
A long-horizon example — such as a lottery or structured settlement payout — shows how much a distant future sum is worth right now.
Given: F = $1,000,000, i = 5% per year, n = 20 years
Result: P = $376,889
Frequently asked questions
What is present value?
Present value is what a future single payment is worth today after discounting at rate i for n periods. It is the same concept as present worth.
What is the present value formula?
P = F(1 + i)^-n
How do I calculate present value?
Enter future payment F, discount rate i, and periods n. The calculator returns present value P.
What is an example of present value?
A $100 payment due in 7 years at 5% is worth $71 today.
What is present worth vs present value?
They are the same concept — present worth is the term used in engineering economics, present value is the finance term.