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Present Value of Annuity Calculator

Calculate the present value of future payment streams with our annuity calculator. Supports both ordinary annuities and annuities due with flexible compounding periods.

Present value
Present value
$7,721.73
Total payments
$10,000.00
Effective rate
5.00%
Payment timing
End
Payment schedule
Period 1
$952.38factor 0.9524; total $952.38
Period 2
$907.03factor 0.9070; total $1,859.41
Period 3
$863.84factor 0.8638; total $2,723.25
Period 4
$822.70factor 0.8227; total $3,545.95
Period 5
$783.53factor 0.7835; total $4,329.48
Period 6
$746.22factor 0.7462; total $5,075.69
Period 7
$710.68factor 0.7107; total $5,786.37
Period 8
$676.84factor 0.6768; total $6,463.21
Period 9
$644.61factor 0.6446; total $7,107.82
Period 10
$613.91factor 0.6139; total $7,721.73

$1,000.00 discounted over 10 periods at 5% nominal interest.

$
%

Results update as you type.

Present Value of Annuity Calculator

This calculator estimates the present value of a stream of equal payments. It is useful for comparing regular payments with a lump sum, reviewing lease-style cash flows, or understanding time value of money assumptions.

How to use this calculator

Enter the payment amount, interest rate, number of periods, payment timing, and compounding frequency. Choose end of period for an ordinary annuity or beginning of period for an annuity due. The results show present value, total payments, effective rate per compounding period, and payment timing.

Formula Used

Ordinary annuity PV = PMT × (1 - (1 + r)^-n) / r
Annuity due PV = ordinary annuity PV × (1 + r)

Where PMT is the payment amount, r is the periodic discount rate, and n is the number of payments. The form discounts each payment period by period using the selected timing.

Worked example

Ten end-of-period payments of 1,000 dollars discounted at 5 percent annually have a present value of about 7,721.73 dollars. If those same payments occur at the beginning of each period, the value rises to about 8,107.82 dollars because each payment is received sooner.

Interpreting the result

Present value depends heavily on the discount rate. Compare with the future value of annuity calculator, compound interest calculator, and interest calculator to understand the same cash flows from different time perspectives.

Frequently asked questions

What is the present value of an annuity?
It is the estimated value today of a series of equal future payments after discounting each payment by an interest rate.
What is the difference between ordinary annuity and annuity due?
An ordinary annuity pays at the end of each period, while an annuity due pays at the beginning, which usually gives a higher present value.
How does the interest rate affect present value?
A higher discount rate lowers the present value because future payments are discounted more heavily.
What compounding frequency should I select?
Select the frequency that matches the rate assumption you want to use, such as annual, semi-annual, quarterly, or monthly.

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