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Annuity Present Value Calculator

Work out annuity present value instantly with clear inputs, formula shown and shareable results.

About Annuity Present Value Calculator

The present value of an annuity is what a stream of equal payments is worth today. Ordinary annuities pay at period end; annuities due pay at the start and are worth one extra period of interest more.

Formula

Annuity PV

PV = P(1-(1+r)^-n)/r, multiplied by (1+r) for an annuity due

Worked example

With the default values below, Annuity Present Value Calculator returns Present Value Of The Annuity of $529,700.71. Change any input above and every figure here is recalculated in your browser.

Inputs used

Payment Per Periodminimum 0
50,000
Discount Rate Per Periodaccepts 0–100 %
7 %
Number Of Paymentsaccepts 1–600
20
Payment Timingone of End of period (ordinary), Start of period (due)
End of period (ordinary)

Results

Present Value Of The Annuity
$529,700.71
Sum Of All Payments
$1,000,000.00
Reduction From Discounting
$470,299.29
Annuity Factor
10.594014

Step by step

  1. 1Values used
  2. 2Annuity PV
  3. 3Present Value Of The Annuity= 529,700.71
  4. 4Sum Of All Payments= 1,000,000.00
  5. 5Reduction From Discounting= 470,299.29
  6. 6Annuity Factor= 10.594014

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or fees or charges into account.
  • Figures are rounded for display to 6 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.

Frequently Asked Questions

What is the annuity factor?

The present value of one unit per period. Multiply it by any payment to get the value of that stream.

Which timing applies to pensions?

Pensions in payment are usually annuities due, since the first payment arrives immediately on retirement.

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