Present Value of Annuity Calculators – Ordinary Annuity and Annuity Due
The present value of an annuity represents the current value of a future, level series of payments for a specified time. It is based on the ‘time value of money’ concept, which breaks down to the idea that a dollar today is worth more than a dollar tomorrow (as a dollar today can be invested to earn interest until tomorrow). The most common example of an annuity is perhaps the fixed residential mortgage, whereby a certain sum of money is borrowed (today) to finance the purchase of a home, to be repaid over time in a series of level payments, at a specified interest rate. In an ordinary annuity, payments are made at the end of each period.
In certain other transactions (i.e. rent), payments are made at the start of each period. Where that is the case, use of the annuity due formula is appropriate (which differs from the ordinary annuity formula by a factor of 1 + interest rate).
Using the calculators below, you can solve for any of the variables in either formula, and see how your balance declines each period, in the table and chart at the bottom of the page.
Present Value of an Ordinary Annuity
Visualizing the Present Value of an Ordinary Annuity
Present Value of an Annuity Due
Visualizing the Present Value of an Annuity Due
Select the Present Value of an Annuity Calculator you want to use
Select the Present Value of an Annuity Calculator you want to use
Ex. Unknown Present Value (PV)
To find the unknown present value of an Ordinary Annuity (or an Annuity Due), where the periodic payment (PP) is $100.00, the interest rate (i) is 10% and the number of periods (n) is 5, enter:
| PP | = | 100 |
| i | = | .1 |
| n | = | 5 |
Ex. Unknown Periodic Payment (PP)
To find the unknown periodic payment for an Ordinary Annuity (or an Annuity Due), where the present value is $500.00, the interest rate (i) is 10% and the number of periods (n) is 5, enter:
| PV | = | 500 |
| i | = | .1 |
| n | = | 5 |
Calculate Periodic Payment – Ordinary Annuity (PP)
Ex. Unknown Interest Rate (i)
To find the unknown interest rate (i) for an Ordinary Annuity (or an Annuity Due), where the present value (PV) is $500.00, the periodic payment is $100.00, and the number of periods is 5, enter:
| PV | = | 500 |
| PP | = | 100 |
| n | = | 5 |
Calculate Interest Rate – Ordinary Annuity (i)
Ex. Unknown Number of Periods (n)
To find the unknown number of periods (n) for an Ordinary Annuity (or an Annuity Due), where the present value (PV) is $500.00, the periodic payment (PP) is $100.00 and the interest rate (i) is 10%, enter:
| PV | = | 500 |
| PP | = | 100 |
| i | = | .1 |
Calculate Number of Payments – Ordinary Annuity (n)
Amortization Table – Ordinary Annuity
| Payment # |
Beginning Balance (PV) |
Periodic Payment (PP) |
Principal Reduction/Contribution |
Periodic Interest |
Ending Balance |
|---|
Amortization Graph - Ordinary Annuity
Accumulations Table - Annuity Due
| Payment # |
Beginning Balance (PV) |
Periodic Payment (PP) |
Principal Reduction/Contribution |
Periodic Interest |
Ending Balance |
|---|