Formula
PV = FV ÷ (1 + r)ᵗ.
Frequently asked questions
What discount rate should I use?
Use the return you could otherwise earn, such as a savings rate or expected investment return.
What a future sum of money is worth in today's terms.
PV = FV ÷ (1 + r)ᵗ.
Use the return you could otherwise earn, such as a savings rate or expected investment return.