KEVOS® MAKEOS · Money
Interest and Equivalence Factors
What are the compound interest factors for this rate and period?
Single-payment, uniform-series and gradient compound interest factors (F/P, P/F, A/P, P/A, A/F, F/A, A/G, P/G) and the effective annual rate for a nominal rate and compounding frequency.
Open the calculatorRuns in your browser. No account needed.
How this tool works
Inputs, units and where to find them
| Input | Unit | Typical source |
|---|---|---|
| Nominal annual rate | % | Nominal annual interest or discount rate. |
| Number of periods (years) | years | Number of years. |
| Compounding periods per year | per year | Compounding frequency (1 annual, 12 monthly). |
| Amount to convert | AUD | An amount used to illustrate each factor. |
Method and formulas
- Effective annual rate i = (1 + r/m)^m − 1.
- F/P = (1 + i)ⁿ; P/A = ((1 + i)ⁿ − 1) ÷ (i(1 + i)ⁿ); A/F = i ÷ ((1 + i)ⁿ − 1); others are reciprocals.
- A/G = 1/i − n ÷ ((1 + i)ⁿ − 1); P/G = (P/A − n(1 + i)^−n) ÷ i.
- Example: at 8% over 10 years, P/A = 6.7101 and A/P = 0.14903.
Limitations
- End-of-period cash flows; beginning-of-period (annuity due) amounts are larger by (1 + i).
- Example values are illustrations. Replace them with values for your actual task.
Typical uses
- Convert between present, future and annual amounts
- Check engineering economics calculations
- Convert a nominal rate to an effective rate
Who it is for
- Engineering managers
- Project engineers
- Finance and business analysts
What you get
- Effective annual rate
- Table of interest factors and converted amounts
Interpreting the result
- Multiply a known amount by the factor for the conversion you need (e.g. P × A/P = equivalent annual amount).
References
- Machinery’s Handbook, 29th edition (Industrial Press, 2012), printed pp. 134–139. Topic reference; no source tables or recommended settings are reproduced.
WORKOS tools are screening and decision-support utilities. Verify important financial, engineering, safety, legal or operational decisions using appropriate professional standards and your organisation’s approved data.
