Present Value of Annuity Calculator
Enter the payment per period, periodic interest rate, and number of periods to find the present value.
Result
How to use
- Enter your values in the fields above.
- Press Calculate to see your result instantly.
- Use the Share button to copy a link to your result.
About this calculator
The present value of an annuity tells you what a series of equal future payments is worth in today's money, given a periodic discount rate — the core calculation behind pricing bonds, valuing pension or lottery payouts, and setting fair loan or lease terms. The formula for an ordinary annuity (payments at the end of each period) is PV = PMT x [1 - (1 + r)^-n] / r, where PMT is the payment per period, r is the periodic interest rate, and n is the number of periods.
Because a dollar received later is worth less than a dollar today, the formula discounts each future payment back to the present and sums them. Financial planners use it to compare a lump sum against a stream of payments, and lenders use the same math in reverse to derive the payment amount for a target loan amount. This calculator takes your payment per period, periodic rate, and number of periods and returns the present value.
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