Present Value (PV) Annuity Calculator, Formula
English

Present Value of an Annuity is a concept to determine the current value of a set of cash flows in the future, when provided with the rate of return or discount rate. It wholly relies on the concept of time value of money, means the current value of a sum of money will be higher in the future. Use this online present value annnuity calculator to find the PV by providing the amount of annuity, interest rate and number of periods based on the present value annuity formula given below.

%
years

Present Value of an Annuity is a concept to determine the current value of a set of cash flows in the future, when provided with the rate of return or discount rate. It wholly relies on the concept of time value of money, means the current value of a sum of money will be higher in the future. Use this online present value annnuity calculator to find the PV by providing the amount of annuity, interest rate and number of periods based on the present value annuity formula given below.

Code to add this calci to your website Expand embed code Minimize embed code

Formula:

Present value = Annuity amount x [1 - (1 / (1 + r)n)] / r
Where, r - Rate of Interest /100 n - Number of years

The present value (PV) of annuity is lower than the present amount of the future value.

Example

What is the present value of an annuity amount of Rs.12000 that is invested at a rate of 10 % for 5 years.
PV = 12000 x [1 - (1 / (1 + (10/100))^5] / (10/100)
= Rs.45489.44

english Calculators and Converters


Sitemap