How the calculation works
Both values use the same growth factor. Future value multiplies by it, present value divides by it.
Growth factor = (1 + rate ÷ 100 ÷ n)n × years
Future value = amount today × growth factor
Present value = amount in the future ÷ growth factor
Here n is how many times a year interest is added: 1 for yearly, 12 for monthly.Worked example
1,000 at 5% a year for 10 years, compounded yearly.
- Growth factor: 1.0510 = 1.6289.
- Future value: 1,000 × 1.6289 = 1,628.89.
- Present value of 1,000 in 10 years at 5%: 1,000 ÷ 1.6289 = 613.91.
What this calculator does not include
- Regular deposits or withdrawals. It handles a single amount.
- Taxes, fees and inflation.
- A rate that changes over time.
Amounts are rounded for display only; the calculation itself is not rounded. Results are estimates for information, not financial advice. Last updated: 12 November 2026.
Frequently asked questions
What is present value?
Present value is what an amount you receive in the future is worth today, if you could earn a certain return in the meantime. Money today can be invested, so the same amount later is worth less.
What is future value?
Future value is what an amount you have today grows to after a number of years at a constant yearly rate, with interest added on interest.
Which rate should I use for present value?
The return you could earn on a similar alternative, often called the discount rate. A higher rate makes the present value lower. There is no single right rate, so try a few.
What does compounding change?
The more often interest is added, the faster the amount grows. Yearly compounding at 5% gives 5% a year. Monthly compounding at a nominal 5% gives a little more, about 5.12% a year.
Does this include deposits or inflation?
No. This is for a single amount. For regular deposits use the compound interest calculator, and for the effect of prices use the inflation calculator.