Useful next calculations
When to use this calculator
- Before choosing between saving, investing or changing a contribution.
- When you want to compare cautious, base and optimistic return assumptions.
- When you need a projection before making a longer-term decision.
- When you want to see whether starting earlier or contributing more changes the outcome more.
A worked example
These are the example figures the calculator opens with.
| Input | Value |
|---|---|
| Future Value (A$) | A$20,000 |
| Annual Discount Rate (%) | 5% |
| Years | 10 |
For those figures the calculator returns:
- Present value: A$12,278.27
- Future value: A$20,000.00
- Discount amount: A$7,721.73
- Rate: 5.00%
- Years: 10
Method & assumptions
This calculator discounts a future sum or series of cash flows back to today's value using a rate you specify. The core formula divides the future value by (1 + rate) raised to the power of the number of periods. For regular cash flows such as pension income or annuity payments, it sums the discounted value of each individual payment.
The calculator assumes a constant discount rate throughout the period and does not account for tax, inflation separately, or changing payment amounts. For UK users, note that pension income is generally taxable, and any present value comparison involving pension cash flows should factor in your marginal income tax rate. This tool is for illustrative planning purposes and does not constitute financial advice.
Common mistakes
- Using an assumption that is not supported by a current local quote, bill, statement or official source.
- Treating a generic estimate as a lender, provider, payroll or tax authority decision.
- Mixing monthly and annual inputs without converting them consistently.
- Testing only one scenario instead of checking how a cautious assumption changes the result.
What to do next
- Run a second scenario with a cautious assumption so you can see the downside clearly.
- Compare the result with the related calculators below before making a decision.
- Check current local rules, eligibility and provider terms before applying or committing money.
- Keep a record of the assumptions so you can update the estimate when a quote, bill or pay figure changes.