Compounding Discount Calculator

The compounding and discount factor calculator handles the six classic engineering-economy time-value-of-money equations. These factors quantify how money grows or shrinks over time at a fixed interest rate, covering every standard relationship between present value, future value, and equal periodic payments. For compounding without discrete periods, use the Continuous Compounding Calculator.

The Six Time-Value-of-Money Equations

Select from six equation types, each with its own formula and solve options:

• Single Payment Compound Amount — F = P(1+i)&supcirc;ⁿ calculates the future value of a lump sum.
• Single Payment Present Worth — P = F/(1+i)&supcirc;ⁿ discounts a future sum to present value.
• Capital Recovery — converts a present amount into equal annual payments (loan amortization).
• Uniform Series Compound Amount — calculates the future value of equal annual deposits.
• Uniform Series Present Worth — calculates the present value of equal annual payments.
• Uniform Series Sinking Fund — determines the equal annual deposit needed to reach a future target.

How to Use

Select the equation type and what you want to solve for. Enter the known values in the appropriate fields. The interest rate should be entered as a percentage (e.g., 5 for 5%). All monetary values are in dollars. The result updates in real time as you modify any input.

Applications

These formulas are used in loan amortization, retirement planning, project evaluation (NPV analysis), bond pricing, and equipment leasing decisions. They allow you to compare cash flows that occur at different times on a common basis.