Present Value of Annuity Calculator

Input

Results

Present Value: 19,393.96

Interest: 1,031.42

Compound Interest Factor: 1.050560

Future Value: 21,431.42

If you were to continually invest 425.00 every time period (month, quarter, year, etc.) at the end of time period, at a rate of 0.208333333333333 % per time period, you would receive 21,431.42 after 48 time periods, which is worth 19,393.96 today.

Input

Payment Amount: 425.00

Interest Rate Per Period: 0.208333333333333 %

Number of Time Periods: 48

Annuity Type: Ordinary (End)

	Amount
Total Payments	20,400.00
Interest	1,031.42

Details

Period	Payment	Interest	Ending Balance
1	425.00	0.00	425.00
2	425.00	0.89	850.89
3	425.00	1.77	1,277.66
4	425.00	2.66	1,705.32
5	425.00	3.55	2,133.87
6	425.00	4.45	2,563.32
7	425.00	5.34	2,993.66
8	425.00	6.24	3,424.90
9	425.00	7.14	3,857.03
10	425.00	8.04	4,290.07
11	425.00	8.94	4,724.00
12	425.00	9.84	5,158.85
13	425.00	10.75	5,594.59
14	425.00	11.66	6,031.25
15	425.00	12.57	6,468.81
16	425.00	13.48	6,907.29
17	425.00	14.39	7,346.68
18	425.00	15.31	7,786.99
19	425.00	16.22	8,228.21
20	425.00	17.14	8,670.35
21	425.00	18.06	9,113.41
22	425.00	18.99	9,557.40
23	425.00	19.91	10,002.31
24	425.00	20.84	10,448.15
25	425.00	21.77	10,894.92
26	425.00	22.70	11,342.61
27	425.00	23.63	11,791.24
28	425.00	24.57	12,240.81
29	425.00	25.50	12,691.31
30	425.00	26.44	13,142.75
31	425.00	27.38	13,595.13
32	425.00	28.32	14,048.46
33	425.00	29.27	14,502.72
34	425.00	30.21	14,957.94
35	425.00	31.16	15,414.10
36	425.00	32.11	15,871.21
37	425.00	33.07	16,329.28
38	425.00	34.02	16,788.30
39	425.00	34.98	17,248.27
40	425.00	35.93	17,709.21
41	425.00	36.89	18,171.10
42	425.00	37.86	18,633.96
43	425.00	38.82	19,097.78
44	425.00	39.79	19,562.56
45	425.00	40.76	20,028.32
46	425.00	41.73	20,495.05
47	425.00	42.70	20,962.74
48	425.00	43.67	21,431.42

Period	Payment (Annuity)	Interest (A)
0	0.00	0.00
1	425.00	0.00
2	850.00	0.89
3	1,275.00	2.66
4	1,700.00	5.32
5	2,125.00	8.87
6	2,550.00	13.32
7	2,975.00	18.66
8	3,400.00	24.90
9	3,825.00	32.03
10	4,250.00	40.07
11	4,675.00	49.00
12	5,100.00	58.85
13	5,525.00	69.59
14	5,950.00	81.25
15	6,375.00	93.81
16	6,800.00	107.29
17	7,225.00	121.68
18	7,650.00	136.99
19	8,075.00	153.21
20	8,500.00	170.35
21	8,925.00	188.41
22	9,350.00	207.40
23	9,775.00	227.31
24	10,200.00	248.15
25	10,625.00	269.92
26	11,050.00	292.61
27	11,475.00	316.24
28	11,900.00	340.81
29	12,325.00	366.31
30	12,750.00	392.75
31	13,175.00	420.13
32	13,600.00	448.46
33	14,025.00	477.72
34	14,450.00	507.94
35	14,875.00	539.10
36	15,300.00	571.21
37	15,725.00	604.28
38	16,150.00	638.30
39	16,575.00	673.27
40	17,000.00	709.21
41	17,425.00	746.10
42	17,850.00	783.96
43	18,275.00	822.78
44	18,700.00	862.56
45	19,125.00	903.32
46	19,550.00	945.05
47	19,975.00	987.74
48	20,400.00	1,031.42

Period	Present Value	Interest (PV)
0	19,393.96	0.00
1	19,393.96	40.40
2	19,393.96	80.89
3	19,393.96	121.46
4	19,393.96	162.12
5	19,393.96	202.86
6	19,393.96	243.69
7	19,393.96	284.60
8	19,393.96	325.60
9	19,393.96	366.68
10	19,393.96	407.85
11	19,393.96	449.10
12	19,393.96	490.44
13	19,393.96	531.87
14	19,393.96	573.38
15	19,393.96	614.98
16	19,393.96	656.67
17	19,393.96	698.44
18	19,393.96	740.30
19	19,393.96	782.24
20	19,393.96	824.28
21	19,393.96	866.40
22	19,393.96	908.61
23	19,393.96	950.90
24	19,393.96	993.29
25	19,393.96	1,035.76
26	19,393.96	1,078.32
27	19,393.96	1,120.98
28	19,393.96	1,163.71
29	19,393.96	1,206.54
30	19,393.96	1,249.46
31	19,393.96	1,292.47
32	19,393.96	1,335.56
33	19,393.96	1,378.75
34	19,393.96	1,422.03
35	19,393.96	1,465.39
36	19,393.96	1,508.85
37	19,393.96	1,552.40
38	19,393.96	1,596.04
39	19,393.96	1,639.77
40	19,393.96	1,683.59
41	19,393.96	1,727.50
42	19,393.96	1,771.50
43	19,393.96	1,815.60
44	19,393.96	1,859.78
45	19,393.96	1,904.06
46	19,393.96	1,948.43
47	19,393.96	1,992.90
48	19,393.96	2,037.45

Present Value: 1,598.84

Interest: 64.82

Compound Interest Factor: 1.038129

Future Value: 1,764.82

If you were to continually invest 425.00 every time period (month, quarter, year, etc.) at the end of time period, at a rate of 2.5 % per time period, you would receive 1,764.82 after 4 time periods, which is worth 1,598.84 today.

Input

Payment Amount: 425.00

Interest Rate Per Period: 2.5 %

Number of Time Periods: 4

Annuity Type: Ordinary (End)

	Amount
Total Payments	1,700.00
Interest	64.82

Details

Period	Payment	Interest	Ending Balance
1	425.00	0.00	425.00
2	425.00	10.63	860.63
3	425.00	21.52	1,307.14
4	425.00	32.68	1,764.82

Period	Payment (Annuity)	Interest (A)
0	0.00	0.00
1	425.00	0.00
2	850.00	10.63
3	1,275.00	32.14
4	1,700.00	64.82

Period	Present Value	Interest (PV)
0	1,598.84	0.00
1	1,598.84	39.97
2	1,598.84	80.94
3	1,598.84	122.94
4	1,598.84	165.98

Compare multiple scenarios in one set of results.

Each set of calculation during visit will be saved in this results area.

Present Value of Annuity (PVA) represents the current equivalent amount of future payments of the same amount for a specific interest rate and a number of periods the interest is compounding. Present Value can be calculated for an ordinary annuity (paid at the end of period) or for an annuity due (paid at the beginning of period).

Present Value of Ordinary Annuity formula (PVOA) is:

Present Value of Annuity Due formula (PVAD) is:

Important notes:

The time frame (year, month, quarter etc.) must be the same for both, 'Interest Rate' and 'Number of Time Periods';
This model assumes that the Interest Rates stay the same the entire period;
This model assumes that Payments are of the same amount the entire period;
This model uses compound interest method.

This Present Value of Annuity calculator allows you to accomplish the following:

Determine the current equivalent amount of a future payments of the same amount given a specific interest rate and a number of periods the interest is compounding;
Compare multiple scenarios, by showing each case in the results section.

Present Value of Annuity calculator is part of the Time Value of Money calculators, complements of our consulting team.

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Definitions and terms used in Present Value of Annuity Calculator

Payment Amount: The amount expected to receive or pay each time period.
Interest Rate Per Period: The rate at which the interest for the use of money is charged or paid. Usually, the interest rate is expressed as a percentage and noted on annual basis.
Number of Time Periods: The number of time the interest is compounded (year, month, quarter etc.) and must have the same time frame as 'Interest Rate Per Period'.
Compound interest: The interest that increases exponentially over time periods. The interest earning interest.
Annuity: Structured schedule of payments of the same amount at regular time intervals.
Ordinary Annuity: The annuity payments are made at the end of each period.
Annuity Due: The annuity payments are made at the beginning of each period.

Present Value of Annuity Examples

Example 1:

You invest 10,000.00 for 25 years at the end of each year. How much the investment is worth today at 5.25% annual interest rate compounded annually?

Payment Amount = 10,000

Interest Rate Per Period = 5.25%

Number of Time Periods = 25

Annuity Type: Ordinary (End)

Answer: Present Value = 137,474.70

If you were to continually invest 10,000.00 at the end of every year, at a rate of 5.25 % per year, you would receive 494,055.11 after 25 years, which is worth 137,474.70 today.

Example 2:

You invest 10,000.00 for 25 years at the beginning of each year. How much the investment is worth today at 5.25% annual interest rate compounded annually?

Payment Amount = 10,000

Interest Rate Per Period = 5.25%

Number of Time Periods = 25

Annuity Type: Due (Beginning)

Answer: Present Value = 144,692.12

If you were to continually invest 10,000.00 at the beginning of every year, at a rate of 5.25 % per year, you would receive 519,993.00 after 25 years, which is worth 144,692.12 today.

Example 3:

You invest 2,500.00 for 25 years at the end of each quarter. How much the investment is worth today at 5.24% annual interest rate compounded quarterly?

Payment Amount = 2,500

Interest Rate Per Period = 5.24% / 4 = 1.31%

Number of Time Periods = 25 * 4 = 100

Annuity Type: Ordinary (End)

Answer: Present Value = 138,907.44

If you were to continually invest 2,500.00 at the end of every quarter, at a rate of 5.24 % per year compounded quarterly, you would receive 510,454.51 after 25 years, which is worth 138,907.44 today.

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