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Business

Present Value of Cash Flows Calculator

Calculate the present value of a series of future periodic cash flows using a discount rate.

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Calculator guide

How to use the Present Value of Cash Flows Calculator

Calculate the present value of a series of future periodic cash flows using a discount rate. Enter the requested values and select Calculate. The result and supporting values are produced locally in your browser.

Formula

PV = Σ(Cash Flowₜ ÷ (1 + r)ᵗ)

Worked example

At an 8% discount rate, future cash flows are discounted back one period at a time to their present value.

What to keep in mind

  • Cash flows are assumed to occur at the end of equally spaced periods.
  • Use a discount rate appropriate to the same period as the cash-flow spacing.

Methodology

This calculator uses deterministic arithmetic and performs the calculation locally in your browser. Verify assumptions, units, and source values for your specific use case.

Review standard: Level B · Industry formula. How calculator reviews work.

Frequently asked questions

What does this calculator calculate?

Calculate the present value of a series of future periodic cash flows using a discount rate.

How is the result calculated?

PV = Σ(Cash Flowₜ ÷ (1 + r)ᵗ).

Can I use the result for an important decision?

Use the result as a calculation aid and verify the inputs, assumptions, and applicable professional or regulatory requirements before relying on it for an important decision.

Does CalculateMeasure store the values I enter?

The calculator performs its arithmetic in your browser. The calculator itself does not need to send your entered values to a server to produce the result.