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Future / Present Value

The two foundational time-value-of-money calculations in one tool.

Short answer

FV = PV × (1+r)ⁿ — what a sum becomes if invested at rate r for n years. PV = FV / (1+r)ⁿ — the discounted value today of money received in the future.

Inputs

What do you want?
£
%

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Calculation method, coverage and version

Inputs used
What do you want?, Amount, Annual rate, Years.
Calculation approach
The calculator applies the rules and assumptions described in “How it works” to the values you enter. Rounding can cause small differences from an official or provider calculation.
Coverage
Mortgages & Money. UK nations, tax treatment, local rules and provider criteria can differ; check the official sources shown below before acting.
Content version
No page-specific review date is currently published. Treat the result as indicative and verify current rules independently.
Not included unless explicitly requested: personal circumstances not entered, provider discretion, future rule changes, professional fees and case-specific exceptions. Read the full calculator methodology.

Primary sources and official verification

Use these official sources to verify current rules before acting. Coverage and dates can differ across England, Scotland, Wales and Northern Ireland.

See the sitewide source policy.

How it works

The time value of money: a pound today is worth more than a pound tomorrow because today's pound can be invested. FV and PV are inverse operations using compound interest.

Worked example

£10k at 5% for 10 years: FV £16,289. The £16,289 you'd receive in 10 years is worth £10,000 today.

Who should use this

  • •Investment planning
  • •Comparing pension lump sums vs annuity
  • •Discounted cash flow analysis

Common mistakes

  • ×Confusing real vs nominal rates (does the rate include inflation?)
  • ×Using FV for irregular cash flows (use NPV instead)

Frequently asked questions

What discount rate should I use for PV?▾

Often a 'risk-free' rate (e.g. UK gilt yield) or your opportunity cost — whatever you'd otherwise earn.

Related calculators

Compound Interest →ROI Calculator →Inflation Calculator →