How to use this calculator
- Enter payment per period, nominal annual discount rate (%), term in years, payments per year, payment timing.
- Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
- Read the result with the assumptions below. Export details or save a second scenario to compare your choices.
Formula and method
Assumptions and limitations
Constant nominal discount rate divided by payment frequency, equal payments and exact periodic spacing. No tax, default risk or inflation adjustment.
Worked example
Ten annual end-of-year payments of 1,000 discounted at 0% have present value 10,000.
What the result means
Discount a fixed stream of payments rather than one future lump sum.
Common questions
How is the calculation performed?
PV = payment × (1 − (1 + periodic rate)^−n) / periodic rate; multiply by (1 + periodic rate) for beginning-of-period payments. At zero rate, PV = payment × n.
What does the model leave out?
Constant nominal discount rate divided by payment frequency, equal payments and exact periodic spacing. No tax, default risk or inflation adjustment.
Methodology and transparency
Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.
Background reference: openstax.org — financial method. FinanceMath implements its own calculator.