Present Value of Annuity Calculator
Calculate the present value of a series of future payments. Enter the payment amount, interest rate, number of periods, and frequency to find the current value.
Regular payment received each period
Total number of payments
What is the present value of an annuity?
Present value of an annuity is the current worth of a series of future payments, discounted at a specific interest rate. It tells you how much money you would need today to equal those future payments.
What's the difference between ordinary annuity and annuity due?
An ordinary annuity pays at the end of each period (like most loans), while an annuity due pays at the beginning of each period (like rent or insurance). Annuity due has a slightly higher present value.
When would I use this calculator?
Use this to evaluate lottery payouts (lump sum vs. payments), pension buyouts, structured settlements, or to determine the current value of any stream of future payments.
How does interest rate affect present value?
Higher interest rates decrease present value because future payments are worth less today when discounted at higher rates. Lower rates mean the future payments are worth more in today's dollars.