How it works
Discount one future payment to today using a fixed annual rate. The rate and horizon must use consistent annual periods.
Inputs and units
| Input | Example value | What to enter |
|---|---|---|
| Future amount | 20,000 | Enter a numeric value. Use a non-negative value. |
| Annual discount rate | 8 % | Enter the percentage as a number: for 15%, enter 15. Use the annual rate. Use a non-negative value. Allowed range: 0–100. |
| Years | 5 | Enter a numeric value. Use a non-negative value. Allowed range: 0–100. |
Worked example
Show example inputs and results
This example is generated by the same calculation engine using the starting values in the form. Your own inputs produce your own result.
- Future amount
- 20,000
- Annual discount rate
- 8 %
- Years
- 5
Complete example results
- Result
- 13,611.66394068
Reading the result
Match the rate period to the payment period. Fees and taxes absent from the inputs are not added automatically; compare totals with the same cost coverage.
Questions and answers
Can I use the example values for my own calculation?
The example values illustrate the calculation. Replace every input with your own information, especially dates, rates and the selected operation.
Why are some results rounded?
Results display up to 8 decimal places. Calculations use the unrounded values; very small values use scientific notation. JavaScript floating-point arithmetic can introduce tiny rounding differences.
Are my inputs sent to a server?
The calculator processes inputs in your browser. Its code does not send your values to a server.