Present worth of escalating annual savings (PW) calculator

Present worth of the escalating receipts is calculated as A1 × [1−((1+g)/(1+i))^n] / (i−g). Use the stated system boundary and matching input units.

\mathrm{PW} = \frac{A_{1} \times \left[1 - \left(\frac{1 + g}{1 + i}\right)^{n}\right]}{i - g}

Calculator

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

Given

\mathrm{PW} = \frac{5000 \times \left[1 - \left(\frac{1 + 0.04}{1 + 0.1}\right)^{5}\right]}{0.1 - 0.04} \approx 20{,}380

Symbol	Meaning	Unit
$\mathrm{PW}$	present worth of the escalating receipts	$
$A_{1}$	saving at the first year end	$/year
$g$	annual proportional growth after first receipt	—
$i$	discount rate on the same price basis	—
$n$	number of year-end receipts	year

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