A dollar today is worth more than a dollar tomorrow. Convert between the present value and future value of money at any interest rate, time period and compounding frequency — in either direction.
The time value of money is one of the most important ideas in finance: a sum of money is worth more today than the identical sum received in the future. The reason is simple — money you hold now can be invested and earn a return while you wait, so today's dollar can grow into more than one dollar by the time the future payment arrives. Put the other way round, a dollar promised years from now is worth less than a dollar in your hand today.
This calculator turns that principle into a figure. Choose a direction, enter an amount, a rate of return, a number of years and a compounding frequency, and it converts between value today and value later. It works both ways, which is what separates it from a one-direction tool like the future value of money calculator.
Time value of money has two directions, and this calculator handles both:
They are mirror images of the same calculation. Future value multiplies by a growth factor; present value divides by it. Switching the dropdown at the top of the calculator flips between the two and relabels the inputs and results so the numbers always read correctly.
Five inputs define the result:
The result shows the converted value, the original amount, and the gap between them — interest earned when growing forward, or the discount when valuing backwards.
One relationship, written two ways. To grow an amount forward into its future value:
To discount a future amount back to its present value, divide instead of multiply:
In both, PV is the value today, FV is the value in the future, r is the annual rate, n is the number of compounding periods per year, and t is the number of years. The two are exact inverses: discount a future value back and you land on the original present value. The future value formula guide breaks the growth side down variable by variable.
Growing $10,000 forward at 7 percent, compounded monthly, gives its future value at each horizon:
| Years | Future value | Interest earned |
|---|---|---|
| 5 years | $14,176 | $4,176 |
| 10 years | $20,097 | $10,097 |
| 20 years | $40,387 | $30,387 |
| 30 years | $81,165 | $71,165 |
Now the reverse: what a future $10,000 payment is worth today, discounted at the same 7 percent. The further away the payment, the less it is worth now — the heart of the time value of money.
| Received in | Present value today | Discount |
|---|---|---|
| 5 years | $7,054 | $2,946 |
| 10 years | $4,976 | $5,024 |
| 20 years | $2,476 | $7,524 |
| 30 years | $1,232 | $8,768 |
Almost every money decision is really a time-value question. Should you take a $20,000 bonus now or $25,000 in three years? Is a pension lump sum better than the monthly payments? What is a future inheritance actually worth today? Present value lets you compare amounts that arrive at different times on a fair, like-for-like basis by pulling them all back to today's money.
One caveat: the figures here are nominal, and the rate represents your rate of return rather than inflation specifically. Inflation is a separate force that also erodes future purchasing power — to model it directly, use the inflation option on the compound interest calculator. To turn a future goal into a savings plan, the savings growth calculator and retirement calculator work from the same time-value math.
The concepts behind the numbers — read the full library in the Learn hub.
Every variable in the growth equation, plus how to rearrange it to solve for rate or time.
Guide · InvestingA step-by-step walkthrough of the future value side of the time value of money, with examples.
Guide · InvestingThe engine behind both present and future value, explained with worked examples.
Guide · InvestingHow regular deposits grow over time when you add money on a schedule.
Keep exploring — every tool below is free and works the same way.
The forward-only companion — project what a single sum of money grows to over time.
InvestingValue a lump sum plus recurring monthly payments at a given interest rate.
InvestingSee how money grows with compound interest, contributions, tax and inflation.
InvestingProject a portfolio's future value with regular contributions and compounding returns.
InvestingEstimate how many years it takes your money to double at a given rate.
RetirementEstimate the nest egg you could have at retirement from contributions and returns.