Annuity Present Value Calculator

What this Annuity Present Value Calculator does

This English-language annuity present value calculator computes the lump-sum equivalent today of a series of equal future payments, using either the ordinary annuity or annuity due convention. Enter your periodic payment, the discount rate per period, and the number of periods — the tool applies the standard present worth annuity formula (PV = PMT × [1 − (1 + r)^−n] / r) and returns your result instantly. Because everything runs client-side, 100% client-side — your data never leaves your browser. No uploads, no tracking, no server logs. Whether you're valuing a pension stream in Seattle or stress-testing a lease deal in Toronto, the calculation stays on your device. If you also need the future side of the equation, check out our [compound interest calculator](/en/compound-interest-calculator/) for compounding scenarios, or the [loan calculator](/en/loan-calculator/) when you need to work backward from a payment schedule.

Features

Ordinary annuity & annuity due. Switch between end-of-period (ordinary) and beginning-of-period (annuity due) payment timing with one click. The annuity due formula multiplies the ordinary result by (1 + r), giving you the correct present value without manual adjustment.
Annuity NPV formula, shown. The calculator displays the full formula alongside the result so you can verify every variable — useful when building an NPV annuity table for a presentation or audit.
Growing annuity support. Enter a constant growth rate g alongside the discount rate r to value a growing annuity using PV = PMT / (r − g). Covers dividend streams, rent escalations, and salary projections where payments increase each period.
Perpetuity shortcut. Set the term to 'perpetuity' and the tool applies the perpetuities formula PV = PMT / r, the limiting case used in bond valuation and real-estate cap-rate analysis.
Copy-ready output. One click copies the result to your clipboard, formatted with the correct number of decimal places — ready to paste into a spreadsheet or a report.
Zero tracking, zero storage. No account required, no cookies set, no server logs written. Your financial inputs are processed entirely in-memory and discarded when you close the tab. The tool dates this privacy commitment to the same era as the ISO 8601 standard — straightforward, unambiguous, and machine-verifiable.

How to use the Annuity Present Value Calculator

Three inputs, one click — results appear immediately below the form.

Enter the periodic payment (PMT). Type the fixed payment amount per period — for example, 1200 for $1,200/month. Use the same currency unit throughout.
Enter the discount rate per period. Use the rate that matches your payment frequency. For a 6% annual rate paid monthly, enter 0.5 (i.e., 6 / 12). The calculator accepts decimal or percentage form.
Enter the number of periods (n). Type the total number of payments — for a 10-year monthly annuity, enter 120. For a perpetuity, type perpetuity or set the special toggle.
Choose payment timing. Select 'Ordinary annuity' if payments occur at the end of each period (most loans, most leases), or 'Annuity due' if they occur at the beginning (common in insurance and rent).
Click Calculate. The present value appears instantly alongside the expanded formula. Use the Copy button to move the result to your clipboard.

Common use cases

Pension and retirement income valuation. A retiree in Seattle receiving $3,500/month for 20 years can use this tool to find the lump-sum equivalent at any given discount rate — useful for comparing a pension buyout offer against staying in the plan.
Lease and rent obligation reporting. Accountants calculating operating lease liabilities under ASC 842 need the present value of future rent payments. Enter the monthly rent, the incremental borrowing rate, and the lease term to get the right-of-use asset figure.
Bond and fixed-income analysis. Fixed-income analysts use the present worth annuity formula to price the coupon stream separately from the par value. Combine the annuity PV with a lump-sum discount for the face value to get the full bond price. Our [Investment ROI Calculator](/en/investment-roi-calculator/) can complement this when you want to compare total returns.
Structured settlement evaluation. Plaintiffs or advisors comparing a structured settlement (periodic payments) against a lump-sum offer need an annuity NPV to make the comparison apples-to-apples. The annuity due option covers cases where the first payment is immediate.
Business valuation — growing annuity. When projecting a business's free cash flow that grows at a constant rate, the growing annuity formula gives a present value without building a full DCF model in a spreadsheet.

Frequently asked questions

What is the annuity formula for present value?

For an ordinary annuity: PV = PMT × [1 − (1 + r)^−n] / r, where PMT is the periodic payment, r is the discount rate per period, and n is the number of periods. For an annuity due, multiply the result by (1 + r) to account for payments made at the start of each period.

What's the difference between an ordinary annuity and an annuity due?

An ordinary annuity pays at the end of each period (think mortgage payments); an annuity due pays at the beginning (think rent or insurance premiums). Because annuity due payments arrive one period earlier, their present value is always higher by a factor of (1 + r).

How do I use the perpetuities formula?

A perpetuity is an annuity that never ends. Its present value simplifies to PV = PMT / r. For example, a $500/year payment discounted at 5% is worth $10,000 today. Use this for preferred stock dividends, consols, or real-estate cap-rate analysis when you assume cash flows continue indefinitely.

Does this calculator send my data to a server?

No. All computation runs in your browser using JavaScript. Nothing is transmitted — no payment amounts, no rates, no results. This is verifiable by opening your browser's network panel while using the tool; you'll see zero outbound requests triggered by the calculation. Unlike cloud-based financial tools where a silent server failure can go undetected for months — recall the GitLab database incident of 2017, where silent backup failures compounded a single engineer's mistake — there is no server here to fail.

What discount rate should I use?

It depends on the context. For personal finance, use the opportunity cost of capital — the return you could earn on a comparable investment. For business valuation, use the weighted average cost of capital (WACC). For lease accounting under ASC 842, use the incremental borrowing rate. Always match the rate frequency to the payment frequency: a 6% annual rate becomes 0.5% per month for monthly cash flows. You can cross-check your rate assumptions with the [CAGR Calculator](/en/cagr-calculator/).

How does the annuity NPV table relate to this calculator?

Traditional present value and annuity tables list the factor [1 − (1 + r)^−n] / r for common combinations of r and n. You multiply that factor by your PMT to get PV. This calculator automates that lookup, handles non-standard rates and terms, and covers growing annuities and annuities due — cases where printed tables fall short. The ISO 8601-style structured output also makes it easy to document your inputs alongside your results for audit trails.