Learn how to calculate the present value of money with this free present value calculator. Also includes the present value calculation formula. Present value is a name often given to the exact amount value of a payment or of a series of payments on a specific date. It’s often used in both statistics and business math.

Present Value can apply to money in the past or in the future. By looking at the present value of a sum of money businesses can track whether they made a wise decision. They can also use the present value to decide what value money has now as opposed to that investment in the future. It could be more profitable for them to take a payment now and invest the money in another venture as opposed to waiting for payment in the future.

You can use our Present Value Calculator to determine what the present value of a future sum would be. Simply enter the future value and the amount of discount. Input the amount of time and click “Calculate” to find the present value. This will arm you with the knowledge needed to make an informed decision.