Annuity Present Value Calculator
Enter the payment, rate, term and payment frequency.
Present value
β
Enter values above
Total payments received
β
Interest component
β
PV per $1 of payment
β
Effective annual rate
β
Value at end of term
β
Worked example
With the default inputs shown below, this calculator returns the following results:
| Input | Value |
|---|---|
| Payment per period ($) | 1000 |
| Annual interest rate (%) | 5 |
| Number of years | 20 |
| Payments per year | 12 |
| Result | Value |
|---|---|
| Present value | $151,525 |
| Total payments received | $240,000 |
| Interest component | $88,475 |
| PV per $1 of payment | $151.53 |
| Effective annual rate | 5.12% |
| Value at end of term | $411,034 |
Values shown are produced by this page in your browser; change any input to update them.
How to use the Annuity Present Value Calculator
- Payment per period ($) β default 1000
- Annual interest rate (%) β default 5
- Number of years β default 20
- Payments per year β default 12
- Press Calculate to update the results instantly.
Frequently asked questions
One where payments arrive at the end of each period β the standard assumption. If payments arrive at the start of the period (an annuity due), the present value is higher by one period of interest, about 1 + r times the figure shown.
Because money received later is worth less today. The gap between total payments and present value is the interest you forgo by spreading the cash flow out.
The return you could realistically earn on a comparable-risk investment. Government bond yields are often used as the floor and corporate bond yields for credit-risky cash flows.