Lump Sum Discount Rate Calculator

What does it do?

This lump sum discount rate calculator works out the discount rate it takes to grow a lump sum from its present value to a future value in a given amount of time.

More precisely, the lump sum discount rate calculator, calculates the discount rate (i) required, for a lump sum to be compounded from its present value (PV) to its future value (FV) in a given number of periods (n).

Formula

The calculator uses the lump sum discount rate formula as shown below:

i = (FV / PV)(1 / n) - 1

Full details of the formula can be seen at our lump sum discount rate formula page.

Instructions

The Excel lump sum discount rate calculator, available for download below, is used to compute the discount rate by entering details relating to the present value, future value, and the number of periods. The calculator is used as follows:

lump sum discount rate calculator v 1.0
Lump Sum Discount Rate Calculator Preview

Step 1

Enter the future value (FV). The future value is the value of the lump sum required at the end of period n.

Step 2

Enter the number of periods (n). The number of periods is entered. A period can be any term (month, year etc), but must be consistent with required discount rate. For example, if the yearly discount rate is required then the periods must be in years.

Step 3

Enter the present value (PV). The present value is the value of the lump sum at the beginning of period 1 (today).

Step 4

The lump sum discount rate calculator works out the discount rate (i). The answer is the discount rate it takes to compound the lump sum from its present value (PV), to its future value (FV) over the number of periods (n).

Lump Sum Discount Rate calculator Download

The lump sum discount rate calculator spreadsheet is available for download in Excel format by following the link below.

The lump sum discount rate calculator is one type of tvm calculator used in time value of money calculations, discover another at the links below.

Notes and major health warnings
Users use this lump sum discount rate calculator at their own risk. We make no warranty or representation as to its accuracy and we are covered by the terms of our legal disclaimer, which you are deemed to have read. This is an example of a discount rate present value calculator that you might use when considering how to calculate the discount rate. It is purely illustrative of a present value discount rate calculator. This is not intended to reflect general standards or targets for any particular business, company or sector. If you do spot a mistake in this single sum discount rate calculator, please let us know and we will try to fix it.
Lump Sum Discount Rate Calculator November 6th, 2016Team

You May Also Like


Related pages


profitibility indexpetty cash control accountmarkup vs gross marginpredetermined overhead rate calculationlabor rate calculatordouble declining depreciation calculation formulatraditional and contribution format income statementsear apr formulaaccounting bank reconciliation templatejournal entry unrealized gainfob shipping meaningtotal variable cost formulanotes payable definewhat is a pmt functionaccounting for insurance recoverieswhat is consignor and consigneepayback period excel formulaaverage accounts receivable formulatemplate for receipt of moneynetcteditfuture annuity calculatorsunk cost definitionselling inventory journal entryjournal entry for accrued expenseactivity based costing formulanpv factor tablegoodwill impairment entryinterest receivable journal entrysales ledger account formataccruals and prepaymentswhat is the difference between adjusting entries and correcting entriesdiminishing balance method depreciationgearing leverageprofit margin formula excelcash replenishmentoperating leaveragepresent value perpetuity calculatorpmt calculation formuladouble declining balance methodinternal rate of return formula accountinginventory perpetualcalculate reorder pointperiodic inventory journal entrieshow to calculate eirdupont analysis formulalifo reserve accountfactoring of accounts receivable definitionsundry expenses meaningperiodic inventory system income statementpresent value of infinite cash flowposting entries to the general ledgerbasic principles of double entry bookkeepinghow to do bank reconciliation exampleoverhead cost examplefixed asset turnover ratio formulaclosing entries retained earningserrors detected by trial balanceaccruals and deferred incomedepreciation schedule templateobjective of bookkeepingbookkeeping rulesinventory template sheetinventory obsolescence reservebalance sheet vertical analysis examplehistory of double entry bookkeepinghow to calculate pv of annuityunearned fees journal entrytypes of accounting errorasset write off journal entrywhat are unearned revenuesfuture value of an annuity tablebook keeping basicsprofit margin percentage formuladefine debtorspv pmt calculatordaily timesheet formathow to prepare multiple step income statementcurrent assets current liabilities ratio analysisentry for bad debt expensehow to record income tax expense with a journal entrysingle entry accounting examplerule of 78 amortization schedule