How to use this calculator
- Enter future payment, effective annual discount rate (%), number of years.
- 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
One future payment and a constant effective annual discount rate. No intermediate cash flows. Negative rates are supported above −100%.
Worked example
A payment of 1,210 due in two years discounted at 10% has a present value of 1,000.
What the result means
A larger discount rate lowers today’s value for a positive future payment. The entered rate represents your scenario, not a market quote.
Common questions
Is this a nominal monthly-compounded rate?
No. Enter an effective annual discount rate.
Can I discount several cash flows?
Use the NPV tool for a series of annual cash flows.
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.