Single Amount Calculator
Calculate to know the future worth of your present investment
What is Single Amount?
Cashflow is a measure of a company's financial performance over a specific period of time. The present value of a single amount is the value today of a future payment.
A single amount has a present value (PV) when it is discounted from its current worth. The PV calculation takes into account the time value of money, or the idea that a rupee today is worth more than a rupee tomorrow. This is due to the fact that money can be invested and earn interest over time.
How is the Single Amount calculated & the formula used?
To calculate the PV of a single amount, use the following formula:
PV = FV / (1 + i)n
FV stands for future value, i stands for the annual interest rate, and n stands for the number of years until receipt. For example, if you have a ₹1,000 bill that will be received in one year, the PV would be ₹970. This is because at a 10% interest rate, ₹1,000 would be worth ₹1,070 after one year. (₹1,000 / (1 + 0.10)1)
What are the benefits of using Single Amount calculator?
Some benefits of using a Single Amount cashflow calculator include:
- Easier to understand your overall financial situation
- Can help you plan for future expenses
- Can help you know the present and future worth.