How to use it
- Choose what to solve for: the ending balance by default, or the deposit, return, years or starting amount (then enter a target).
- Enter amounts, rate, years and compounding; More options adds yearly deposit increases and inflation.
- Read the result, the breakdown chart and the yearly schedule, and export CSV for further analysis.
Discount factor table
Present value = future amount × discount factor. At 8%, 1,000,000 in 10 years is worth about 463,000 today.
| Rate | 1 year | 5 years | 10 years | 20 years |
|---|---|---|---|---|
| 3% | 0.9709 | 0.8626 | 0.7441 | 0.5537 |
| 5% | 0.9524 | 0.7835 | 0.6139 | 0.3769 |
| 8% | 0.9259 | 0.6806 | 0.4632 | 0.2145 |
| 10% | 0.9091 | 0.6209 | 0.3855 | 0.1486 |
Frequently asked questions
Which discount rate should I use?
Use the return you give up elsewhere: a deposit or fund rate for payment options, the cost of capital for projects. The higher the rate, the less future money is worth today.
How accurate are the results?
Formulas are exact and compounding is simulated period by period, shown to the cent. Real returns fluctuate and banks differ on day counts, tax and fees, so use the results for planning and comparison.