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Discounted escalated future cost calculator

Present escalated cost is calculated as C0 × (1+k)^n/(1+i)^n. Use the stated system boundary and matching input units.

P=C0×(1+k)n(1+i)nP = \frac{C_{0} \times \left(1 + k\right)^{n}}{\left(1 + i\right)^{n}}

Calculator

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

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year
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Worked example

Given

  • C0C_{0} = 10,000 $
  • kk = 0.03 —
  • nn = 10 year
  • ii = 0.07 —
P=10,000×(1+0.03)10(1+0.07)10≈6,832P = \frac{10{,}000 \times \left(1 + 0.03\right)^{10}}{\left(1 + 0.07\right)^{10}} \approx 6{,}832

Symbols and units

SymbolMeaningUnit
PPpresent escalated cost$
C0C_{0}current annual cost$
kkcost escalation—
nnfuture payment yearyear
iinominal discount—

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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.