# Present Value

*Saving & Investing — Finicade finance glossary*

What a future sum of money is worth today, once you discount it for the return you could have earned in the meantime. Bigger discount rate or longer wait means a smaller present value.

**Related terms:** [Time Value of Money](https://finicade.com/glossary/time-value-of-money), [Future Value](https://finicade.com/glossary/future-value), [Discount Factor](https://finicade.com/glossary/discount-factor)

**Taught in:** Charter Climb — Time Value of Money

Source: https://finicade.com/glossary/present-value