Income Stream Calculator Kenya — Value Any Payment Series
Enter a recurring payment amount, choose the frequency, set a discount rate and duration. We’ll show you what that entire income stream is worth in today’s shillings.
Receiving KES 10,000 every month for 5 years at 10% has a present value of KES 470,654. Total payments sum to KES 600,000 — but future money is worth less today, so the time-value discount is KES 129,346.
How the Income Stream Formula Works
The present value of an annuity formula discounts every future payment back to today and adds them up. Each later payment is worth less because you lose more potential investment time. The factor [(1 − (1 + r)⁻ⁿ) / r] is the annuity factor — multiply it by the payment to get the present value.
For monthly payments, divide the annual rate by 12 and multiply the years by 12 to get the periodic rate and total number of payments. The higher the discount rate or the longer the duration, the lower each future payment is worth today. This principle underpins bond pricing, lease valuation, and pension calculations across Kenya and globally. Compare with a single future amount using the Present Value Calculator.
Discount Rates by Investment Vehicle in Kenya (2026)
Use these rates as your discount rate depending on where you would invest today.
| Product | Typical Rate | Risk Level | Liquidity |
|---|---|---|---|
| Money Market Funds | 8 – 12% | Low | Next-day |
| Unit Trusts (Balanced) | 10 – 15% | Medium | 3–5 days |
| Treasury Bills | 14 – 17% | Very low | 91–364 days |
| Treasury Bonds | 12 – 14% | Very low | 2–25 years |
| Fixed Deposits | 6 – 10% | Low | 3–12 months |
| SACCO Savings | 8 – 14% | Medium | Varies |
| Equity Fund (Unit Trust) | 12 – 18% | High | 3–5 days |
Present Value of Common Income Streams in Kenya
What regular payment streams are worth today at different rates and durations.
| Payment | Frequency | Duration | Rate | Present Value |
|---|---|---|---|---|
| KES 10,000 | Monthly | 3 years | 10% | KES 309,912 |
| KES 10,000 | Monthly | 5 years | 10% | KES 470,654 |
| KES 25,000 | Monthly | 5 years | 10% | KES 1,176,634 |
| KES 50,000 | Quarterly | 5 years | 12% | KES 743,874 |
| KES 100,000 | Annually | 10 years | 10% | KES 614,457 |
| KES 50,000 | Monthly | 20 years | 9% | KES 5,557,248 |
Want to see a single future amount instead? Try the Present Value Calculator
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