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Present Value of Annuity Calculator

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Present Value Basics of Time Value of Money Future value

✖The Monthly Payment is the amount a borrower is required to pay each month until a debt is paid off.ⓘ Monthly Payment [p]			+10% -10%
✖Interest Rate is the amount charged, expressed as a percentage of the principal, by a lender to a borrower for the use of assets.ⓘ Interest Rate [IR]			+10% -10%
✖The Number of Months is the total number of compounding intervals.ⓘ Number of Months [n_Months]			+10% -10%

✖Present Value of Annuity is the current value of a set of cash flows in the future, given a specified rate of return or discount rate.ⓘ Present Value of Annuity [PVAnnuity]

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Present Value of Annuity Solution

STEP 0: Pre-Calculation Summary

Formula Used

Present Value of Annuity = (Monthly Payment/Interest Rate)*(1-(1/(1+Interest Rate)^Number of Months))
PVAnnuity = (p/IR)*(1-(1/(1+IR)^n_Months))
This formula uses 4 Variables

Variables Used

Present Value of Annuity - Present Value of Annuity is the current value of a set of cash flows in the future, given a specified rate of return or discount rate.
Monthly Payment - The Monthly Payment is the amount a borrower is required to pay each month until a debt is paid off.
Interest Rate - Interest Rate is the amount charged, expressed as a percentage of the principal, by a lender to a borrower for the use of assets.
Number of Months - The Number of Months is the total number of compounding intervals.

STEP 1: Convert Input(s) to Base Unit

Monthly Payment: 28000 --> No Conversion Required
Interest Rate: 5.5 --> No Conversion Required
Number of Months: 13 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

PVAnnuity = (p/IR)*(1-(1/(1+IR)^n_Months)) --> (28000/5.5)*(1-(1/(1+5.5)^13))

Evaluating ... ...

PVAnnuity = 5090.90909077139

STEP 3: Convert Result to Output's Unit

5090.90909077139 --> No Conversion Required

FINAL ANSWER

5090.90909077139 ≈ 5090.909 <-- Present Value of Annuity

(Calculation completed in 00.006 seconds)

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< Present Value Calculators

Present Value of Future Sum given compounding periods

LaTeX Go Present Value = Future Value/(1+(Rate of Return/Compounding Periods))^(Compounding Periods*Number of Periods)

Present Value of Annuity

LaTeX Go Present Value of Annuity = (Monthly Payment/Interest Rate)*(1-(1/(1+Interest Rate)^Number of Months))

Present Value of Future Sum given Number of Periods

LaTeX Go Present Value = Future Value/exp(Rate of Return*Number of Periods)

Present Value of Future Sum given Total Number of Periods

LaTeX Go Present Value = Future Value/(1+Interest Rate)^Total Number of Periods

Present Value of Annuity Formula

LaTeX Go

Present Value of Annuity = (Monthly Payment/Interest Rate)*(1-(1/(1+Interest Rate)^Number of Months))
PVAnnuity = (p/IR)*(1-(1/(1+IR)^n_Months))

How to Calculate Present Value of Annuity?

Present Value of Annuity calculator uses Present Value of Annuity = (Monthly Payment/Interest Rate)*(1-(1/(1+Interest Rate)^Number of Months)) to calculate the Present Value of Annuity, Present Value of Annuity is the current value of a set of cash flows in the future, given a specified rate of return or discount rate. Present Value of Annuity is denoted by PVAnnuity symbol.

How to calculate Present Value of Annuity using this online calculator? To use this online calculator for Present Value of Annuity, enter Monthly Payment (p), Interest Rate (IR) & Number of Months (n_Months) and hit the calculate button. Here is how the Present Value of Annuity calculation can be explained with given input values -> 4666.667 = (28000/5.5)*(1-(1/(1+5.5)^13)).

FAQ

What is Present Value of Annuity?

Present Value of Annuity is the current value of a set of cash flows in the future, given a specified rate of return or discount rate and is represented as PVAnnuity = (p/IR)*(1-(1/(1+IR)^n_Months)) or Present Value of Annuity = (Monthly Payment/Interest Rate)*(1-(1/(1+Interest Rate)^Number of Months)). The Monthly Payment is the amount a borrower is required to pay each month until a debt is paid off, Interest Rate is the amount charged, expressed as a percentage of the principal, by a lender to a borrower for the use of assets & The Number of Months is the total number of compounding intervals.

How to calculate Present Value of Annuity?

Present Value of Annuity is the current value of a set of cash flows in the future, given a specified rate of return or discount rate is calculated using Present Value of Annuity = (Monthly Payment/Interest Rate)*(1-(1/(1+Interest Rate)^Number of Months)). To calculate Present Value of Annuity, you need Monthly Payment (p), Interest Rate (IR) & Number of Months (n_Months). With our tool, you need to enter the respective value for Monthly Payment, Interest Rate & Number of Months and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

How many ways are there to calculate Present Value of Annuity?

In this formula, Present Value of Annuity uses Monthly Payment, Interest Rate & Number of Months. We can use 1 other way(s) to calculate the same, which is/are as follows -

Present Value of Annuity = Cashflow per Period*((1-e^(-Rate per Period*Number of Periods))/(e^Rate per Period-1))

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