Time Value of Money (PV) Calculator

Find the Present Value of a Future Sum.

Future Value (Your Goal)

₹

Discount Rate (p.a.)

Your expected annual return.

Time Period

Years

Compounding Frequency

Present Value (Amount to Invest Today)

₹ 0

Future Value Goal

₹ 0

Present Value

₹ 0

Total Interest

₹ 0

What is the Time Value of Money (TVM)?

The Time Value of Money (TVM) is the concept that a sum of money is worth more *today* than the same sum of money in the *future* due to its earning potential.

This calculator helps you find the Present Value (PV), which answers: "To reach a specific financial goal in the future, how much money do I need to invest *today*?"

The Present Value Formula

PV = FV / (1 + r/n) ^ (nt)

PV = Present Value (what you need to invest today)
FV = Future Value (your goal)
r = Annual Discount Rate (decimal)
n = Compounding periods per year
t = Time in years

Compounding vs. Discounting

Compounding moves money *forward* in time (Present -> Future). This is what our Lumpsum Calculator does.

Discounting moves money *backward* in time (Future -> Present). This is what this TVM calculator does.

FAQs

Q. What is a "Discount Rate"?

It is your expected annual rate of return. A higher discount rate means you need to invest *less* money today to reach your goal, because you assume it will grow faster.

Q. How is this useful?

It helps in goal planning. For example: "I need ₹50 Lakhs in 15 years. If I expect 12% returns, I need to invest ₹9.13 Lakhs today."