When to use this calculator
Discount a finite stream of equal end-of-period payments. Rate and payment intervals must match. The first payment is one period from now.
Explore the savings & interest calculators for other questions in this topic. For a related calculation, use the Compound Interest Calculator: Estimate a future balance with a fixed rate and regular compounding.
PUTTING IT INTO PRACTICE
Annuity Present Value: a worked example
The values below are an illustrative example, not a recommendation. Replace them with measurements or assumptions that match your question.
| Input | Example value |
|---|---|
| End-of-period payment | 100 |
| Discount rate per period (%) | 0 |
| Payments (integer) | 12 |
| Result | 1,200 currency units |
- Check the input labels and enter the example values above.
- Apply the relationship: PV = payment × (1−(1+r)^−n)/r.
- The result is 1,200 currency units, rounded for display.
How to interpret your result
Rate and payment intervals must match. The first payment is one period from now.
Match the quoted rate to its compounding convention. A nominal rate, effective annual rate and continuous rate are not interchangeable. Contribution timing also matters when interest is included in a future-value model.
Frequently asked questions
Is a future savings value a forecast?
It is a scenario based on your entered rate and contributions. Changing rates, fees, tax or interrupted payments can change the actual outcome.
When is the annuity present value calculator useful?
Discount a finite stream of equal end-of-period payments. Rate and payment intervals must match. The first payment is one period from now.
How do I use the annuity present value calculator?
Enter end-of-period payment, discount rate per period (%), payments (integer). The result updates automatically. Use the units shown beside each input; the example values illustrate the method.
Which formula does this calculator use?
PV = payment × (1−(1+r)^−n)/r.
What should I check before using the result?
Rate and payment intervals must match. The first payment is one period from now.
How are results rounded?
Scalar numbers display up to six decimal places, with scientific notation for very large or small values. Text, fraction, date and schedule outputs use the format described on the tool. Intermediate calculations use JavaScript floating-point arithmetic. Keep sensible precision for your measurements.
Further reading
For background on this topic, see OpenStax: compound interest ↗. This is a topic reference, not an external review or endorsement of this tool.
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