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Our online tools will provide quick answers to your calculation and conversion needs. On this page, you can calculate present value of annuity (PVA) of both simple as well as complex annuities. You can use this calculator to calculate loan repayments and payouts from immediate insurance schemes.
Android: Use this pva calculator offline with our "time value of money" calculator app.
Following is the formula for calculating present value of an annuity:
PVA = P * ((1 - 1 / (1 + i)n) / i)
PVA = Present value
P = Periodic payment amount
n = Number of payments
i = Periodic interest rate per payment period; This is derived from nominal annual rate using the formula shown in the calculator for periodic interest rate.
For annuities where the payment is made in the beginning of a period,
PVAannuity due = PVA * (1 + i)
You can solve for all four variables involved in present value of annuity calculation viz. PVA, P, n and i. Unlike spreadsheets and financial calculator models, there is no convention of using negative numbers. Enter only positive values in this present value of annuity calculator.
See this link for detailed explanation of present value of annuity concepts.