Uniform Gradient Present Worth (UGPW)

The Uniform Gradient Present Worth (UGPW) calculator computes the Uniform Gradient Present Worth factor based on the interest rate and number of cash flow periods.

INSTRUCTIONS: Enter the following:

• i% - interest rate per period
• n - number of periods (e.g. cash flow periods)

Uniform Gradient Present Worth (UGPW):  The calculator returns the UGPW factor as a real number.

The Math / Science

The  UGPW is a Discrete Compounding Discount Factor.  The formula for Uniform Gradient Present Worth is:

     `UGPW =((1+i)^n-1)/(i^2(1+i)^n) - n/i`

where: 

• UGPW is the Uniform Gradient Present Worth factor
• i is the interest rate
• n is the number of cash flow periods.

This equation calculates the Uniform Gradient Present Worth (UGPW) discount factor. It is a popular equation in engineering economics.

The uniform gradient present worth, UGPW, is a Discrete Compounding Discount factor.  

This discount factor is used to calculate the present worth of the future value of a cash flow changing by a uniform gradient.  

Present value = Future value * discount factor.

Present and Future Worth Calculators

• (SPCA) Single Payment Compound Amount Factor
• (USSF) Uniform Series Sinking Fund Factor 
• (SPPW) Single Payment Present Worth Factor
• (UGFW) Uniform Gradient Future Worth Factor 
• (UGPW) Uniform Gradient Present Worth Factor 
• (UGUS) Uniform Gradient Uniform Series Factor 
• (USCA) Uniform Series Compound Amount Factor 
• (USPW) Uniform Series Present Worth Factor 

EXAMPLE

The discount factor computed from a uniformly increasing cash flow over a period of n = 5 compounding periods at an interest rate of i =6.5% would be approximately: 7.789

REFERENCE

• Lindeburg, Michael R (1992). Engineer In Training Reference Manual. Professional Publication, Inc. 8th Edition.