# 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.

# Select the Present Value of an Annuity Calculator you want to use

## 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 = 0.1 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 = 0.1 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 = 0.1 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 = 0.1 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 = 0.1

## 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 = 0.1

# Amortization Table – Ordinary Annuity

Payment
#
Beginning Balance
(PV)
Periodic Payment
(PP)
Principal
Reduction/Contribution
Periodic
Interest
Ending
Balance

# Accumulations Table - Annuity Due

Payment
#
Beginning Balance
(PV)
Periodic Payment
(PP)
Principal
Reduction/Contribution
Periodic
Interest
Ending
Balance