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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.

The present value of an income stream tells you what a series of future payments is worth today, after adjusting for a discount rate. The formula is PV = PMT × [(1 − (1 + r)−n) / r]. For example, receiving KES 10,000 every month for 5 years at a 10% annual discount rate gives a present value of approximately KES 470,654. That is the fair price you should pay today for that stream of payments — any less and you get a bargain, any more and you overpay.
Calculator 08
Income Stream: Present Value of Payments
Value a series of recurring payments in today's shillings.
KES
Present value today
KES 470,654
Total received
KES 600,000
Time-value discount
KES 129,346
In plain English

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

PV = PMT × [(1 − (1 + r)⁻ⁿ) / r]
PV
Present Value
PMT
Payment
r
Periodic Rate
n
Total Payments

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.

ProductTypical RateRisk LevelLiquidity
Money Market Funds8 – 12%LowNext-day
Unit Trusts (Balanced)10 – 15%Medium3–5 days
Treasury Bills14 – 17%Very low91–364 days
Treasury Bonds12 – 14%Very low2–25 years
Fixed Deposits6 – 10%Low3–12 months
SACCO Savings8 – 14%MediumVaries
Equity Fund (Unit Trust)12 – 18%High3–5 days

Present Value of Common Income Streams in Kenya

What regular payment streams are worth today at different rates and durations.

PaymentFrequencyDurationRatePresent Value
KES 10,000Monthly3 years10%KES 309,912
KES 10,000Monthly5 years10%KES 470,654
KES 25,000Monthly5 years10%KES 1,176,634
KES 50,000Quarterly5 years12%KES 743,874
KES 100,000Annually10 years10%KES 614,457
KES 50,000Monthly20 years9%KES 5,557,248

Want to see a single future amount instead? Try the Present Value Calculator

Income Stream Calculator — FAQ

The present value of an income stream is what a series of future payments is worth in today’s shillings, after adjusting for a discount rate. For example, KES 10,000 per month for 5 years at 10% has a present value of about KES 470,654. This is the fair price you should pay today for that income stream. Understanding this helps you evaluate pensions, rental income, annuities, and any recurring cash flows.

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Serrari Markets provides independent financial data and educational tools. Serrari Limited is a financial data, education and investment-origination platform. Serrari is not a fund manager, investment bank or deposit-taking institution and does not hold client investment funds. Where clients elect to invest, transactions are executed through appropriately licensed and regulated third-party financial institutions. The relevant product provider remains responsible for the issuance, management and custody of each investment. Calculator results are estimates for educational purposes. Always consult a licensed advisor before making investment decisions.