Financial Calculators
Present Value Calculator
Run the lumpsum calculator in reverse: start from the goal, find what one investment today gets you there.
The reverse of a lumpsum calculator: start from the goal and discount it back. Useful when a bonus, gratuity or maturity amount is in hand and you want to know if it is already enough.
These figures are for illustrative purposes only and are not investment advice. Please consult your investment adviser for investment related advice.
Discounting: compounding's mirror
Present value answers a wonderfully practical question: I need this amount by that year; if I invest once, today, how much is enough? It is the mirror of compounding, and it is the right tool the day a bonus, gratuity or maturity payout lands.
It also builds the deepest intuition in finance: money far in the future is cheap to buy today. A crore fifteen years away costs less than a fifth of a crore now.
The discounting formula
PV = target / (1 + return)^yearsWorked example: a Rs 1 crore target 15 years away at 12% needs just Rs 18,26,963 invested today; compounding contributes the remaining Rs 81,73,037.
Frequently asked questions
When is present value more useful than a SIP plan?
When a lumpsum is actually in hand: gratuity, DSOP payout, bonus, inheritance or sale proceeds. It tells you whether that amount, invested once, already secures a goal.
What if I have less than the required amount today?
Invest what you have and cover the gap with a SIP; the Goal SIP with Existing Corpus calculator does exactly that split.
Why does the required amount fall so fast with time?
Discounting is exponential: each extra year divides the requirement by (1 + return). Fifteen years at 12% divides it by more than five.
Should the target be inflation-adjusted?
Yes: inflate today's cost of the goal to its date first, then discount that future figure back. Otherwise the goal is understated.
A lumpsum today can retire a goal entirely.
We help families match windfalls to goals so nothing important stays unfunded.