ACalculator is an efficient analyzer. Using this calculator, one can find out the present value of future prospective earnings from a lump sum investment. After entering the future value, rate of return, compounding method, and starting/ending date, this analyzer will graphically show what you are looking for.
The present value calculation date.
The day when the lump sum investment return will be equal to the desired future value.
The value for what you want to find out the present value.
Rate of return
Your anticipated rate of return from the lump sum investment. This rate of return compounds annually based on the type of compounding method you have chosen. But the reality is, the actual rate of return may not be the same, rather lower, as the investors are interested on stable inflows of funds and hence, invest their money with a more conservative approach.
The frequency of compounding. The rate of return can be compounded daily, weekly, bi-weekly, monthly, quarterly, semi-annually, or annually. More frequent payments lead to more compounded income. You can choose different frequency for different assets. For example, annual compounding is selected usually for capital market instruments. So, while investing, be informed of how frequently the financial institution is compounding your investment.