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Present Value Calculator

Enter a future amount, a discount rate and a number of years to see what it is worth today.

RM

The sum you expect to receive or need in the future.

%

The return you could earn instead, or an inflation rate.

years

How many years away the amount is.

This result is an estimate only. Check with your bank or the relevant authority before making decisions.

How it is calculated

  • Present value = future amount ÷ (1 + rate)^years
  • Discount factor = 1 ÷ (1 + rate)^years
  • Amount lost to discounting = future amount − present value

To go the other way, use the future value calculator.

Worked example

RM100,000 received in 10 years, discounted at 5% a year:

  • Factor = 1 ÷ 1.05^10 = 0.6139
  • Present value = RM61,391.33

Why your number may differ

The answer depends heavily on the rate you pick. A higher rate makes the future sum worth less today. Yearly compounding is assumed, and tax and fees are not included.

Frequently asked questions

What is present value?

It is what a future sum of money is worth today, given a rate you could earn or lose to inflation. Money now is worth more than the same money later.

Which discount rate should I use?

Use the return you could realistically earn on a safe alternative, or expected inflation if you only want to compare buying power.

What is the discount factor?

The number you multiply the future amount by to get today’s value. It equals 1 ÷ (1 + rate) raised to the number of years.

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