Present Value of a Series of Nonannuity Payments Calculator

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This calculator computes the present value of a series of irregular or unequal payments received in the future.

Example

If an investor projects receiving a cash flow from a business into the future, he can place a value on that business today. If he expects the business will lose about $10,000 this year, then make $20,000 the second year with a 10% increase each subsequent year until the end of the fifth year, what is the company worth today?

Note: This example assumes that there is no residual value at the end of five years.

Field Input
Current date 1/1/2017
Annual discount rate 8%

Payment Schedule

Date Amount
1/1/2018 -$10,000
1/1/2019 $20,000
1/1/2020 $22,000
1/1/2021 $24,200
1/1/2022 $26,620

In this example, the total of the payments received from the business would be $82,820, and the present value of those payments is $61,249.11.

Note: This total present value is also the value of the investment.

Working in the input grid

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