Online Cash Flow Factor Calculator

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This calculator is useful for engineering economic analysis and is in a similar format to Tables of Cash Flow Factors. These factors are used to find equivalent cash flows between:

- Present
- Future
- Annual
- Uniform Gradient

Example 1: You have $100,000 presently earning interest at 5%. How much will it be worth in 15 years? Answer: Use the calculator to find the factor selecting "convert present to future" at 5%, 15 years. Answer: Factor=2.0789. Thus, multiply $100,000 by 2.0789 to get $207,890.

Example 2: You will receive $100,000 in 8 years. What is the present value at 6% interest? Answer: Use "convert future to present", 6%, 8 time periods. The factor is 0.6274. Multiply the factor by $100,000 to get $62,740.

Example 3: You are going to build equipment and lease it out for a 15 year life at $10,000 the first year with an increase of $1,000 each year. For comparison to other lease options, you want to know what is the present value of the lease equivalent to at 8% interest? Answer: Break up the cash flow into $9,000 annually and a uniform gradient of $1,000 per year for 15 years. Use calculator to get ("convert annual to present", 8%, 15 years) and (convert gradient to present, 8%, 15 years). You get ($9,000)(8.5595)+($1,000)(47.886)= $124,921. This compares to the not-discounted, $255,000 collected over the 15 years.

Note that the calculator works in time periods. You could put in a monthly interest rate and number of months and get a correct answer.