This lump sum number of periods calculator works out the amount of time it takes to grow a lump sum from its present value to a future value allowing for a given discount rate.
Specifically, the lump sum number of periods calculator calculates the number of periods (n), for a lump sum to be compounded from its present value (PV) to its future value (FV), using a discount rate i.
Formula
The calculator uses the lump sum formula as shown below:
n = LN (FV / PV) / LN (1 + i)
Additionally, full details of the formula can be seen at our lump sum number of periods formula page.
Instructions
The Excel number of periods calculator is available for download below. The calculator is used to compute the number of periods by entering details relating to the present value, future value, and the discount rate.
Accordingly the calculator is used as follows.
Step 1 (FV)
Firstly, enter the future value (FV). The future value is the value of the lump sum required at the end of period n.
Step 2 (i)
Secondly, enter the discount rate (i). The discount rate is the rate used to compound the lump sum forward, from the beginning of period 1 (today), to end of period n. The rate should be for a period. For example, if the period is a year, then the rate should be the yearly rate.
Step 3 (PV)
Next enter the present value (PV). The present value is the value of the lump sum at the beginning of period 1 (today).
Step 4
Finally the calculator works out the number of periods (n). The answer is the number of periods it takes to compound the lump sum from its present value (PV), to its future value (FV), at the discount rate i.
Lump Sum Number of Periods Calculator Download
The lump sum number of periods calculator spreadsheet is available for download in Excel format by following the link below.
The lnumber of periods calculator is one type of tvm calculator used in time value of money calculations. Discover another at the links below.
Users use this number of periods calculator at their own risk. We make no warranty or representation as to its accuracy. Additionally we are covered by the terms of our legal disclaimer, which you are deemed to have read. This is an example of a time value of money calculator that you might use when considering how to calculate the number of periods. It is purely illustrative of a tvm calculator. Furthermore this is not intended to reflect general standards or targets for any particular business, company or sector. If you do spot a mistake in this number of periods calculator, please let us know and we will try to fix it.
About the Author
Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University.