Present Value of Annuity Calculator
This calculator determines the present value of a series of equal periodic payments. Enter the payment amount, the discount rate per period, and the number of periods. You can choose between ordinary annuity (payments at period end) and annuity due (payments at period beginning). The calculator shows what those future payments are worth in today's dollars.
Present value of annuity formulas
Ordinary Annuity: PV = PMT × (1 - (1 + r)^(-n)) / r
Annuity Due: PV = PMT × (1 - (1 + r)^(-n)) / r × (1 + r)
where PMT = payment, r = discount rate per period, n = number of periods
How to use this calculator
- Enter your regular payment amount in "Payment amount".
- Enter the discount rate for one period in "Discount rate per period".
- Enter the total number of periods in "Number of periods".
- Select whether payments occur at the end (ordinary) or beginning (due) of each period.
- The calculator shows the present value and discount breakdown.
Present value of annuity calculator: frequently asked questions
What is the present value of an annuity?
It is the lump sum today that equals a series of future payments. If you could choose between a series of payments or a lump sum now, both should have equal value.
How is it different from future value?
Future value shows what payments will be worth in the future. Present value shows what those future payments are worth today. They are inverses of each other.
When do I use this calculator?
Use it to value bonds, annuities, loans, or any situation where you need to know today's worth of a series of future cash flows.
What is the discount rate?
The discount rate is the interest rate used to convert future payments to present value. It represents your required rate of return or the market interest rate.
Can the discount rate be zero?
Yes, if the discount rate is zero, the present value equals the sum of all payments (no time value). This is unrealistic but mathematically valid.
Official sources
- U.S. Securities and Exchange Commission: Investor Education.
Reviewed by the CalculatorHub team, edited by James Graham, 14 June 2026. See our methodology.