Work out annuity present value instantly with clear inputs, formula shown and shareable results.
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.
Annuity PV
PV = P(1-(1+r)^-n)/r, multiplied by (1+r) for an annuity due
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.
The present value of one unit per period. Multiply it by any payment to get the value of that stream.
Pensions in payment are usually annuities due, since the first payment arrives immediately on retirement.