PV of Cash Flows Calculator

Calculate the present value (PV) of a series of future cash flows using a discount rate. Enter your discount rate, compounding frequency, and up to five cash flow amounts with their corresponding periods — the calculator returns the total present value plus a breakdown of each discounted cash flow. Choose whether payments fall at the beginning or end of each period. Also try the use the FV of Annuity Calculator.

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Your expected rate of return or cost of capital per period.

How many times interest compounds within one period. Use 12 for monthly compounding with an annual rate.

The period number (e.g. year or month) when this cash flow occurs.

Results

Total Present Value

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PV of Cash Flow 1

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PV of Cash Flow 2

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PV of Cash Flow 3

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PV of Cash Flow 4

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PV of Cash Flow 5

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Total Undiscounted Cash Flows

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Total Discount Applied

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Results Table

Frequently Asked Questions

What is the present value of cash flows?

The present value (PV) of cash flows is the current worth of a series of future payments, discounted at a specified rate of return. Because money today is worth more than the same amount in the future — due to its earning potential — discounting translates future sums back into today's dollars. See also our calculate IRR.

What formula does this calculator use?

Each cash flow is discounted using PV_n = CF_n ÷ (1 + i/m)^(m×n), where CF_n is the cash flow at period n, i is the annual discount rate, m is the compounding frequency, and n is the period. The total PV is the sum of all individual discounted cash flows. If payments occur at the beginning of a period, the period exponent is reduced by one.

What discount rate should I use?

The right discount rate depends on your context. For investment analysis, use your required rate of return or the cost of capital. For corporate projects, the weighted average cost of capital (WACC) is common. For risk-free comparisons, a government bond yield can serve as a baseline. Higher discount rates produce lower present values.

Can this calculator handle uneven cash flows?

Yes — that is its primary purpose. You can enter up to five cash flows at any combination of periods with different amounts. Each is discounted individually and the results are summed to give the total present value of the irregular series. You might also find our Present Value Calculator useful.

What is the difference between PV of cash flows and NPV?

PV of cash flows calculates the discounted value of future inflows only. Net Present Value (NPV) goes one step further by subtracting an initial investment (outlay at t = 0) from the PV total. If you need to factor in an upfront cost, subtract it manually from the Total Present Value shown here.

Does it matter whether cash flows occur at the beginning or end of a period?

Yes. Cash flows at the beginning of a period are discounted one fewer period than those at the end, making them worth slightly more in present value terms. For example, receiving $5,000 at the start of year 1 is the same as receiving it today if your period is year 0; at the end of year 1 it gets discounted by one full period.

Does inflation affect present value?

Inflation is already implicitly captured when you choose a nominal discount rate that includes an inflation premium. If you want a real (inflation-adjusted) present value, use a real discount rate — roughly the nominal rate minus the expected inflation rate — as your input.

What happens if the discount rate is zero?

When the discount rate is 0%, no discounting occurs and every future cash flow retains its full face value. The total present value will equal the sum of all undiscounted cash flows. This represents a scenario where there is no time value of money or opportunity cost.