---
title: "Present Value Calculator — PV of Lump Sum and Annuity"
description: "Calculate the present value of a future lump sum or annuity payments. Understand how discount rates work in the US, UK, and international finance. Free, no ads."
url: "https://worldcalculators.org/calculators/present-value/"
canonical: "https://worldcalculators.org/calculators/present-value/"
---

# Present Value Calculator

Calculate the present value of a future lump sum or annuity payments. Understand how discount rates work in the US, UK, and international finance. Free, no ads.

## Quick answer

Different institutions use different discount rates for evaluating future cash flows:

## Discount Rates Around the World

Different institutions use different discount rates for evaluating future cash flows:

## Frequently Asked Questions

Present value is today's worth of a future sum of money, discounted by a rate that reflects the time value of money and risk. The formula is PV = FV / (1 + r)^n, where FV is the future value, r is the discount rate, and n is the number of years.
For personal finance decisions, many people use 5–8% to reflect expected investment returns. For business projects, companies use their Weighted Average Cost of Capital (WACC), typically 8–12%. The UK Treasury's Green Book recommends a 3.5% real discount rate for public projects. The US OMB uses varying rates depending on the policy area.

Source: https://worldcalculators.org/calculators/present-value/
Markdown mirror of the HTML page. Prefer this URL for RAG; the interactive calculator still lives on the HTML page.