ClueLuma

Deferred uniform present worth calculator

Present worth at time zero is calculated as A × [1−(1+i)^(-n)] / [i × (1+i)^d]. Use the stated system boundary and matching input units.

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

Calculator

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

$/year
—
year
year
$

Worked example

Given

  • AA = 10,000 $/year
  • ii = 0.07 —
  • nn = 10 year
  • dd = 3 year
P=10,000×[1−(1+0.07)−10]0.07×(1+0.07)3≈57,333P = \frac{10{,}000 \times \left[1 - \left(1 + 0.07\right)^{-10}\right]}{0.07 \times \left(1 + 0.07\right)^{3}} \approx 57{,}333

Symbols and units

SymbolMeaningUnit
PPpresent worth at time zero$
AAuniform end-period cash amount$/year
iidiscount rate—
nnnumber of receiptsyear
ddperiods to one period before first receiptyear

Related calculators

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