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.
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.