CalcQuick · Present value
Present Value Calculator for a Lump Sum and Annual Payments
Enter an additional amount received at the end of the period and, optionally, equal yearly payments. Keep amounts in the same currency and select when those yearly payments arrive.
Reviewed and updated:Illustrative inputs: replace rates and costs with your own assumptions.
01
How to use this calculator
- Enter your values using the units shown.
- Review the result, which updates instantly.
- Check the formula and assumptions before using the number for a decision.
02
Formula and assumptions
Let r = annual percentage ÷ 100, n = whole years and A = (1 + r)^(−n). Lump-sum PV = FV × A. End-year payment PV = payment × (1 − A) ÷ r; multiply that payment component by (1 + r) for beginning-year payments. At 0%, total PV = FV + payment × n.
03
Worked example
A single 10,000 receipt in ten years discounted at 5% a year has a present value of 6,139.13. Adding 500 at each year-end gives a total present value of 10,000.00.
CalcQuick
Sources and scope
These references support the formula or category guidance. CalcQuick remains responsible for the calculator implementation.
- PV: constant rates and periodic paymentsMicrosoft Support
FAQ
Frequently asked questions
What does the discount rate mean?
It is your chosen annual rate for translating future money into today’s value. It is an assumption, not a market rate or a forecast supplied by CalcQuick.
Can I value a lump sum or an annuity on its own?
Yes. Set yearly payments to zero for a lump sum, or set the final lump sum to zero for equal yearly receipts. At zero years there are no recurring payments.
Why do beginning-year payments have a higher present value?
Each payment arrives one year earlier than an end-year payment. With a positive discount rate it is discounted for less time.