See what a future sum is worth today

Present value calculator

Calculate the present value of a future sum of money, discounted at a given rate of return.

Formula

present value = future value ÷ (1 + discount rate)^years

Assumptions

• The discount rate should reflect what you could otherwise earn on your money (an investment return, or your cost of capital) — a higher rate means future money is worth relatively less today.
• Assumes a single lump sum received at one future date, not a series of payments over time.

Frequently asked questions

Why is money in the future worth less today?
Because money you have now can be invested and grow — a ringgit today plus a reasonable return over N years is worth more than that same ringgit received only N years from now, so future money is "discounted" to reflect what it's really worth in today's terms.

What's the difference between this and the Inflation calculator?
They use the same mathematical shape but answer different questions: Inflation shows how purchasing power erodes over time at a given inflation rate. Present value shows what a specific known future payment is worth today at your chosen discount (return) rate — often used to compare investment options or lump-sum offers.