Present Value Calculators – Ordinary Annuity and Annuity Due2019-01-02T14:55:42+00:00

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

Ex. Unknown Present Value (PV)

To find the unknown present value of a 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 Present Value (PV)

To find the unknown present value of a 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

Calculate Present Value – Ordinary Annuity (PV)

Ex. Unknown Periodic Payment (PP)

To find the unknown periodic payment for a 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

Ex. Unknown Periodic Payment (PP)

To find the unknown periodic payment for a 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 = 100
i = .1
n = 5

Calculate Periodic Payment – Ordinary Annuity (PP)

Ex. Unknown Interest Rate (i)

To find the unknown interest rate (i) for a Ordinary Annuity (or an Annuity Due), where the present value (PV) is $500.00, the periodic payment is $100.00, and the time is 5, enter:

PV = 500
PP = 100
n = 5

Ex. Unknown Interest Rate (i)

To find the unknown interest rate (i) for a Ordinary Annuity (or an Annuity Due), where the present value (PV) is $500.00, the periodic payment is $100.00, and the time 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 a 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

Ex. Unknown Number of Periods (n)

To find the unknown number of periods (n) for 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

Amortization Graph - Annuity Due



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