# Present Value Calculator: What Future Money Is Worth Today > Present value calculator: discount a future amount or a stream of monthly payments to today's value at your rate. Compare policy payouts and offers. Source: https://trykosh.com/tools/present-value-calculator Free tool - Investing # Present value calculator Find what money you'll receive in future is worth today. Discount one future amount, or a series of monthly payments, at a rate you choose. Rules checked 25 October 2026Free - no sign-upRuns in your browser Present value INR 5,08,349 INR 10,00,000 in 10 years, discounted at 7% Discount for waiting**INR 4,91,651** Worth today, per INR 1**INR 0.51** Present value **INR 5,08,349**Discount **INR 4,91,651** Same amount, received later Received in Worth today 1 year INR 9,34,579 3 years INR 8,16,298 5 years INR 7,12,986 10 years INR 5,08,349 Compounded yearly. The same maths, run forwards, is compound interest. ## Upload your statement and Kosh does this for you. Upload your statements and Kosh tracks every SIP, FD and deposit in one place, and shows how far you are from each goal. [Start free](/signup?via=tool-present-value-calculator) ## How the present value calculator works A rupee today is worth more than a rupee in future, because today's rupee can be invested. Present value turns a future amount into today's terms by discounting it at a rate that reflects what you could earn elsewhere, or inflation. For a single amount, the calculator divides the future amount by (1 + rate) raised to the number of years. The table shows how the same amount loses value the further away it is. For a series of monthly payments, such as a pension, rent or an instalment offer, it discounts each payment at the monthly rate and adds them up. Payments are assumed at the end of each month. The discount rate is the key choice. Use the return you could reasonably earn at similar risk: a deposit rate for guaranteed payments, a higher rate for uncertain ones. PV = FV / (1 + r)ⁿ; series: PV = PMT x \[1 − (1 + i)^(−n)\] / i r yearly discount rate i monthly rate n years, or months for a series ## Worked example: Is a INR 15 lakh maturity worth it? An insurance agent tells Gayatri that her policy will pay INR 15 lakh in 12 years. Discounted at 7.5%, roughly what a safe deposit might earn, that's worth about INR 6,29,781 today. If the premiums she'd pay over those years add up to more than that in today's terms, she'd be better off investing them herself. Present value INR 6,29,781 INR 15,00,000 in 12 years, discounted at 7.5% Discount for waiting**INR 8,70,219** Worth today, per INR 1**INR 0.42** Present value **INR 6,29,781**Discount **INR 8,70,219** Compounded yearly. The same maths, run forwards, is compound interest. [Load this example into the calculator ->](?amount=1500000&rate=7.5&years=12#calculator) ## Good to know - Use present value to compare a lump-sum settlement with instalments: discount the instalments and compare with the lump sum offered. - Discounting at the inflation rate tells you what a future amount buys in today's prices. - When comparing an insurance-cum-investment policy, discount the maturity value and compare it with the present value of all the premiums. ## Frequently asked questions What is present value? It's what a future amount is worth today, given that money can earn a return in the meantime. INR 10 lakh in 10 years is worth about INR 5.08 lakh today at a 7% discount rate. What discount rate should I use? Use the return you could earn on an investment with similar risk. For a guaranteed payment, a deposit or government bond rate. For uncertain payments, a higher rate. To see purchasing power, use inflation. What is the difference between present value and future value? Future value grows today's money forward at a rate; present value brings future money back to today. They're the same formula used in opposite directions. How do I compare a lump sum with monthly payments? Find the present value of the monthly payments at your discount rate and compare it with the lump sum. Whichever is higher is worth more today. ## Sources and assumptions - [Reserve Bank of India](https://www.rbi.org.in/) Rules and rates last checked on 25 October 2026. Results are estimates for planning and education, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not a SEBI-registered investment adviser and does not offer personalised investment advice, hold your money or execute trades. Markets carry risk; read scheme documents carefully and consult a registered adviser before acting.