Academic Tools

Present Value Calculator

Find what a future sum of money is worth today at a given rate of return, a core idea in the time value of money.

Future Value (₹)

Enter a value between ₹0 and ₹1,00,00,000.

Annual Interest Rate (%)

Enter a rate between 0% and 50%.

Time Period (Years)

Enter a period between 0 and 50 years.

Present Value

₹

66,501.86

Total Interest (Discount)

payments ₹ 33,498.14

Future Value Split 67% Present Value

Present Value Interest

"A rupee today is worth more than a rupee tomorrow, because today's rupee can be invested to earn more."
— The time value of money

function Discounting Formula

PV = FV / (1 + r)ⁿ

Where r is the annual rate and n is the number of years

payments

Inflation Impact

Purchasing power erodes over time. Higher inflation calls for a higher discount rate when you work out what a future sum is worth today.

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Opportunity Cost

The discount rate usually stands for the return you could earn elsewhere on an investment of similar risk.

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Risk Assessment

Use a higher discount rate for riskier future cash flows, to reflect the uncertainty of receiving the full amount.

Reeju Datta

Cofounder, Cashfree

" Understanding finance isn't just about balancing budgets; it's about mastering - opportunity, risk, and innovation. Initiatives like the National Finance Olympiad are instrumental in cultivating this essential skill set "

Soumya Kanti Purkayastha

Ex-CBO Aakash Educational Services

" Cultivating financial literacy among the youth is paramount for their future success. The NFO is equipping them with the tools they need to navigate the complexities of finance & build a secure future "

Professor Sankarshan Basu

Finance Professor, IIM Bangalore