Present Value of Annuity Calculator
Enter the payment, interest rate and number of periods to find the present value of an annuity, what a stream of equal future payments is worth today.
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Enter the payment, rate and periods to see the present value.
Worked example
With these example inputs:
- Payment per period$10,000
- Interest rate5%
- Number of periods20
Present value of annuity: $124,622
- Payment$10,000
- Total payments$200,000
- Periods20
- If the rate were 1 point lower$135,903
- If the rate were 1 point higher$114,699
Frequently asked questions
What is the present value of an annuity?
It is the worth today of a series of equal future payments, discounted at a chosen rate. A $10,000 yearly payment for 20 years at 5% is worth about $124,622 now.
Why is it less than the total payments?
Because money in the future is worth less than money today. Discounting each payment back to the present shrinks the total to reflect the time value of money.