Accounting Calculator
Calculate present or future value and equal payments from your cash-flow assumptions.
Amount and calculation
Enter a positive cash-flow amount, or zero.
Count payment periods, not years, unless payments are annual.
Rate and timing
The example uses 6%. Enter the rate for your calculation.
Nominal assumes compounding at the chosen period frequency.
Applies to equal payments only.
$50,548
Value at the start of the first period.
6%
$60,000
5 annual payments. 6% effective annual rate. Payments at period end.
Choose the Financial Calculation
This accounting calculator discounts or compounds a single amount, values equal payments or calculates the payment needed for a present value target. Choose the calculation first, then enter the amount and number of periods. The formulas below explain each calculation.
Present value (PV) discounts cash flows to the start. Compounding them to the end gives future value (FV). For one amount, PV = FV / (1 + i)^n and FV = PV × (1 + i)^n. Here, i is the rate per period as a decimal and n is the number of periods.
An annuity is a series of equal payments. For period-end payments, PV = payment × [1 - (1 + i)^(-n)] / i. Its future value is payment × [(1 + i)^n - 1] / i. The annuity payment mode divides your present value target by the present value factor.
At a zero rate, either annuity value is payment × n. The payment for a present value target is PV / n. Enter positive amounts for the size of each cash flow. This tool does not combine mixed inflows and outflows or an additional terminal balance.
Values and totals display as whole dollars. A calculated payment displays cents, while the calculation retains precision. Inputs stay on this device and are neither uploaded nor saved in browser storage.
Payment Timing and Period Rates
Match the period rate to the payment frequency. An effective annual rate converts to i = (1 + annual rate)^(1 / m) - 1, where m is periods per year. A nominal annual rate compounded at that frequency converts to i = annual rate / m. Use decimals in both formulas.
For example, an effective annual rate of 12% compounds $10,000 to $11,200 over 12 monthly periods. A nominal annual rate of 12%, compounded monthly at 1%, gives $11,268. Choose the basis that matches the rate you have.
Period-end payments start after one period. Period-start payments begin immediately, so multiply either annuity value by (1 + i). Divide the period-end annuity payment by (1 + i) for a present value target paid at each period’s start. Payment timing has no effect on single-amount modes.
The calculator accepts up to 600 equal periods and annual rates from 0% to 100%. Amounts are limited to $99,999,999 and calculated values to $999,999,999,999. Uneven dates, negative rates and changing payment amounts need a separate cash-flow calculation.
An IFRS 16 Lease Example
For a fictional lease with five annual payments of $12,000 at period end and a 6% discount rate, the present value is $50,548. The undiscounted payments total $60,000. These are the calculator’s default inputs.
Select period start for the same payments and the present value becomes $53,581. That sum includes an immediate $12,000 payment. After paying it at commencement, the unpaid payments have a present value of $41,581.
Under AASB 16’s lease measurement requirements, the initial lease liability discounts payments unpaid at commencement. Use the implicit rate when readily determinable, otherwise the lessee’s incremental borrowing rate. The example’s 6% is an assumption, not a prescribed rate.
Assess lease scope, term and included payments separately. The right-of-use asset also considers prepayments, incentives and initial direct costs, plus applicable restoration obligations. This tool demonstrates present-value arithmetic for equal cash flows. It does not determine the complete lease liability or right-of-use asset.
Carry the selected payment timing and rate basis into your workpaper with the result. A lease with rent reviews, options or other unequal cash flows needs a schedule that reflects those terms.