Present Value Calculator
Find what a future amount or a stream of cash flows is worth in today's money.
Present Value Calculator
Cash Flows (year, amount)
Present Value
—
Total Future Amount
—
Value Lost to Discounting
—
Effective Annual Rate
—
Future amount vs. present value
Discounted Cash Flows
| # | Year | Cash flow (₹) | Discount factor | Present value (₹) | Cumulative PV (₹) |
|---|
Assumptions & method
- Formula: PV = Σ cash flowₖ × DF(tₖ). With compounding m times a year, DF(t) = (1 + r ÷ m)^(−m × t). With continuous compounding, DF(t) = e^(−r × t).
- The discount rate is a nominal annual rate. The effective annual rate shown is (1 + r ÷ m)^m − 1, or e^r − 1 for continuous compounding.
- Each cash flow is assumed to arrive exactly at its stated year (fractions allowed, 0 means today). Entries are sorted by year.
- A single payment is a one-row stream. Negative amounts are treated as outflows and reduce the present value.
- Inflation, tax and risk are not modelled separately. Fold them into the discount rate if you want them reflected.
Results are estimates based on the figures you enter. They are not guarantees and not financial advice.
What is present value?
Present value converts money you expect to receive later into its equivalent today. The idea is the time value of money: cash in hand can be invested, so a promise of the same amount in the future is worth less. Discounting reverses compounding. If your money could earn 8% a year, then ₹1,08,000 due in a year is worth ₹1,00,000 now. This calculator handles a single payment, such as a maturity amount or a legal settlement, and a stream of dated payments, such as rent or bond coupons. You can also change how often the rate compounds, which matters more at higher rates and longer horizons. The effective annual rate shows what the chosen compounding really means per year.