Present Value Calculator — What Is Future Money Worth Today?
Calculate the present value of a future sum. Understand the time value of money, discount rates, and how PV is used in investing and business decisions.
₹1 lakh received 5 years from now is NOT worth ₹1 lakh today — because money today can be invested and grown. Present value answers: "What is a future amount worth in today's rupees?" It's the foundation of all investment analysis, business valuation, and financial decision-making.
The CalcHub Present Value Calculator computes PV for any future sum.
The Present Value Formula
PV = FV / (1 + r)ⁿWhere: FV = future value, r = discount rate per period, n = number of periods.
Present Value Table
What is ₹1,00,000 received in the future worth today?| Years from Now | At 6% | At 8% | At 10% | At 12% |
|---|---|---|---|---|
| 1 | ₹94,340 | ₹92,593 | ₹90,909 | ₹89,286 |
| 2 | ₹89,000 | ₹85,734 | ₹82,645 | ₹79,719 |
| 3 | ₹83,962 | ₹79,383 | ₹75,131 | ₹71,178 |
| 5 | ₹74,726 | ₹68,058 | ₹62,092 | ₹56,743 |
| 7 | ₹66,506 | ₹58,349 | ₹51,316 | ₹45,235 |
| 10 | ₹55,839 | ₹46,319 | ₹38,554 | ₹32,197 |
| 15 | ₹41,727 | ₹31,524 | ₹23,939 | ₹18,270 |
| 20 | ₹31,180 | ₹21,455 | ₹14,864 | ₹10,367 |
Practical Applications
Comparing Investment Options
Should you take ₹10 lakh today or ₹15 lakh in 5 years?At 10% discount rate: PV of ₹15 lakh in 5 years = 15,00,000 / (1.10)⁵ = ₹9,31,382
Since ₹10 lakh today > ₹9.31 lakh (PV of future amount), take the money now.
At 6% discount rate: PV = 15,00,000 / (1.06)⁵ = ₹11,20,890
At 6%, the future amount is worth more, so wait for ₹15 lakh.
The discount rate determines the answer — and it should reflect your realistic investment return rate.
Evaluating Insurance Policies
An endowment policy promises ₹25 lakh after 20 years for a total premium of ₹10 lakh. Is it a good deal?
PV of ₹25 lakh at 8% over 20 years = 25,00,000 / (1.08)²⁰ = ₹5,36,400
You're paying ₹10 lakh for something worth ₹5.36 lakh in today's money. Not a good deal.
Real Estate Decisions
A plot will likely be worth ₹50 lakh in 10 years. What should you pay today?
At 10% return expectation: PV = 50,00,000 / (1.10)¹⁰ = ₹19,28,000
If the plot is priced above ₹19.28 lakh, you'd get better returns elsewhere.
Present Value of Annuities
For regular payments (like EMIs, rent, or pension), use the annuity formula:
PV = PMT × [(1 − (1+r)⁻ⁿ) / r]| Monthly Payment | Years | Discount Rate | Present Value |
|---|---|---|---|
| ₹10,000/month | 5 | 8% | ₹4,92,600 |
| ₹10,000/month | 10 | 8% | ₹8,25,600 |
| ₹25,000/month | 20 | 8% | ₹29,89,700 |
| ₹50,000/month | 25 | 10% | ₹54,53,700 |
How to Use the Calculator
- Open the CalcHub Present Value Calculator
- Enter future value (₹)
- Enter discount rate (annual %)
- Enter time period (years)
- See: present value and the discount amount
What discount rate should I use?
Use your realistic expected return rate. If you'd invest the money in equity mutual funds (10–12%), use 10%. If in FDs (7%), use 7%. For business decisions, use the company's cost of capital (typically 10–15%). Higher discount rates reduce present value.
Is present value the same as NPV?
Not exactly. Present value calculates the current worth of a single future sum. Net Present Value (NPV) calculates the total present value of a series of future cash flows minus the initial investment. NPV uses PV as a building block.
Why does inflation matter for present value?
Inflation erodes purchasing power, which is one reason money today is worth more than money later. You can use the inflation rate as your discount rate to find the real (inflation-adjusted) present value.
Related Calculators
- Compound Interest Calculator — future value of money
- NPV Calculator — net present value of cash flows
- IRR Calculator — internal rate of return
- Inflation Calculator — purchasing power over time