Present value of annuity calculator
Discount equal payments to today, with end-period and beginning-period values.
Formula
PV = PMT × [1 − (1+r)^−n]/r; due PV = PV × (1+r). At r=0: PMT × n.
End-period present value ≈ (1,000)×(7.721734929) · Beginning-period present value ≈ (7,721.734929)×(1+(5)÷100)
How to use
- Enter each payment in one currency.
- Set the discount rate per payment period and number of payments.
- Compare end-period and beginning-period values.
Examples
- Two payments of 121 at 10% per period: end-period PV 210; due PV 231.
Frequently asked questions
What is a period?
Use matching payment and rate intervals, such as a monthly rate for monthly payments.
When is the first payment?
Ordinary payments start one period from today; due payments start today.
Is this a perpetuity?
No. Payments stop after the number entered; fees and tax are excluded.
Sources
Updated: