Investment
Present Value of Annuity Calculator
Discount equal periodic payments to today and compare ordinary and due timing.
Results
Enter values and press Calculate to see an explanation.
Result interpretation
Annuity PV adds the present values of equal payments. Due payments arrive one period earlier, raising PV at a positive rate.
Read the learning guide →FORMULA
Formula
Annuity PV is payment times the annuity discount factor; for payments at period start, multiply by one period of growth. i is the periodic rate and n the payment count.
Variables and limits
PMT is the equal periodic payment, i is the nominal annual rate divided by frequency, and n is the payment count. Payments and discount periods must align; taxes, fees, and changing rates are excluded.
WORKED EXAMPLE
Example
- Enter a payment of 100, annual discount rate 10%, three payments, and annual frequency.
- End-of-period PV is 100/1.1 + 100/1.1² + 100/1.1³ ≈ 248.69.
- Beginning-of-period PV is about 273.55 after multiplying by 1.1; timing matters.
Frequently asked questions
How do ordinary and due annuities differ?
An ordinary annuity pays at period end; an annuity due pays at period start, shifting every payment one period earlier.
What happens at a zero discount rate?
With no discounting, PV equals payment times number of payments for either timing.
Can payments vary?
Use NPV and discount each payment separately when amounts vary.