THE LEARNING LAB / FREE TO EVERYONE
Make time and
cash flow visible.
Explore a lump sum, regular savings, a target fund, an annuity due, and a perpetuity from one transparent set of assumptions. The calculation happens on the server and the form is not saved to your account or browser.
120 PAYMENT PERIODS / 10 YEARS
Choose the relationship that fits the decision.
| Relationship | Result | Practical use |
|---|---|---|
| Future value of a lump sum | KES 215,892 | What an amount already invested could become. |
| Future value, ordinary annuity | KES 1,801,243 | Savings paid at the end of each month, quarter or year. |
| Future value, annuity due | KES 1,812,832 | Contributions made at the beginning of each period, such as rent or a pre-funded savings instruction. |
| Present value, ordinary annuity | KES 834,324 | Today’s value of a known stream paid at each period-end. |
| Present value, annuity due | KES 839,692 | Today’s value when the first cash flow arrives immediately. |
| Required annuity-due sinking-fund contribution | KES 9,842 | How much to set aside at each period-start to meet the stated future goal. |
Perpetuity view
The level value assumes the stated annual cash flow continues indefinitely without growth. Perpetuity outputs are useful for understanding long-lived income streams and terminal-value logic, but they are especially sensitive to the discount-rate and growth assumptions.
Follow the calculation.
Formulae used
Periodic rate equals the effective annual rate converted to the selected payment frequency; periods equal payment dates per year times years.
Future value of an ordinary annuity adds payments at each period-end. An annuity due moves each payment one period earlier.
Present value discounts a regular stream back to today. An annuity due has one more period of value.
A sinking fund solves for the regular amount needed to meet a target. A growing perpetuity is valid only when the discount rate is greater than long-run growth.
When the periodic rate is zero, the annuity factors become the number of payment periods. The calculator handles that case directly rather than dividing by zero.
Change the rate, not the story.
Only the effective annual return changes in these three scenarios. Regular contribution, target, inflation and time stay the same.
| Effective annual return | Future value, ordinary contributions | In today’s purchasing power |
|---|---|---|
| 6.00% | KES 1,803,819 | KES 1,107,389 |
| 8.00% | KES 2,017,135 | KES 1,238,346 |
| 10.00% | KES 2,258,013 | KES 1,386,224 |
Inspect each year
| Year | Total cash contributed | End-of-period contributions | Beginning-of-period contributions | Ordinary result in today’s KES |
|---|---|---|---|---|
| 1 | KES 220,000 | KES 232,339 | KES 233,139 | KES 221,275 |
| 2 | KES 340,000 | KES 375,265 | KES 376,929 | KES 340,376 |
| 3 | KES 460,000 | KES 529,625 | KES 532,222 | KES 457,510 |
| 4 | KES 580,000 | KES 696,334 | KES 699,939 | KES 572,875 |
| 5 | KES 700,000 | KES 876,379 | KES 881,073 | KES 686,666 |
| 6 | KES 820,000 | KES 1,070,829 | KES 1,076,697 | KES 799,069 |
| 7 | KES 940,000 | KES 1,280,834 | KES 1,287,972 | KES 910,265 |
| 8 | KES 1,060,000 | KES 1,507,639 | KES 1,516,149 | KES 1,020,430 |
| 9 | KES 1,180,000 | KES 1,752,589 | KES 1,762,579 | KES 1,129,735 |
| 10 | KES 1,300,000 | KES 2,017,135 | KES 2,028,724 | KES 1,238,346 |
Use a schedule when the obligation is a loan.
The mortgage planner models a repayment schedule, interest split, final balance, and the effect of an extra monthly payment. Use the companion workbooks for variable rates, irregular cash flows, tax, and full scenario analysis.
Open the loan repayment planner →