ClueLuma

Arithmetic gradient A/G calculator

Convert a fixed yearly-increment sequence to an equivalent uniform annual amount.

A=G×[1i−n(1+i)n−1]A = G \times \left[\frac{1}{i} - \frac{n}{\left(1 + i\right)^{n} - 1}\right]

Calculator

Enter the values you know and leave one box empty. Calculate finds the empty one, the result or any input.

$/period
decimal
periods
$/period

Worked example

Given

  • GG = 100 $/period
  • ii = 0.08 decimal
  • nn = 10 periods
A=100×[10.08−10(1+0.08)10−1]≈387.1A = 100 \times \left[\frac{1}{0.08} - \frac{10}{\left(1 + 0.08\right)^{10} - 1}\right] \approx 387.1

Symbols and units

SymbolMeaningUnit
AAequivalent equal payment$/period
GGincrease per successive payment$/period
iidiscount rate per perioddecimal
nnnumber of periodsperiods

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Results are estimates for study and screening. Check the inputs, units and assumptions before you use them for design, billing or contract decisions.