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Single Cash Flow Present Value Calculator

Discount one future amount at a constant periodic rate.

  • Formula & worked example
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Calculator inputs

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How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Edit a calculated value to solve backwards, or lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

A future amount of 1,210 discounted for two periods at 10% per period has a present value of 1,000. The difference between those values is 210.

Present value = future value ÷ (1 + rate per period)^periods

Worked example

Enter these known values and leave the other values blank.

Future value
1210 USD
Number of periods
2
Interest rate
10 %
Present value
1000 USD
Total interest
210 USD

Assumptions and limitations

  • No. Match the rate to the period count: a monthly rate needs a count of months. The model has one cash flow and constant compounding, with no fees or intermediate payments.
  • Use consistent periods, currency and accounting definitions. The result follows the stated formula and the figures you supply.

Common questions

Must the rate be annual?

No. Match the rate to the period count: a monthly rate needs a count of months. The model has one cash flow and constant compounding, with no fees or intermediate payments.

References

The calculation equations, inverse formulas, units, and input rules were imported from this source. Bookify provides the interface and equation solver.

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