This present value of annuity calculator finds what a series of equal future payments is worth today, discounted at a given rate. Enter the payment, rate, and number of periods above.
Formula
PV = PMT × [ 1 − (1+r)⁻ⁿ ] ÷ r
Example
$1,000/year at 5% for 10 years: PV = $7,722.
Why it matters
Present value lets you compare a lump sum today against a stream of payments, key for loans, leases, and retirement planning.
Good to know
These results are estimates for educational purposes only and are not financial advice. Rates, fees, and terms vary by lender and situation — confirm figures with a licensed professional before making decisions. Last updated: August 2026.
Frequently Asked Questions
How do I calculate the present value of an annuity?
Multiply the payment by [1 minus (1+r) to the power minus n] divided by r, using the periodic rate.
What is present value?
It is what future money is worth today, discounted for the time value of money at a chosen rate.
What is an ordinary annuity?
One where payments occur at the end of each period; an annuity due pays at the start and is worth slightly more.