This present value of an annuity calculator can help you figure out the worth of a stream of payments extending into the future. By taking the annual payment, number of payment periods, and the interest rate (or discount rate) of the annuity, this tool can calculate the value of that annuity stated in terms of today's dollars.
The variables used in our online calculator are defined in detail below, including how to interpret the results.
Annuity Payments ($ / Year)
These are the annual payments the investor receives on the annuity. This is a stream of payments that occur in the future, stated in terms of nominal, or today's, dollars.
Annual Interest Rate (%)
This is the interest rate earned on the annuity. Since this calculator is figuring out the present value of the annuity, this value is used as a discount rate when calculating the annuity's present value.
Payment Period (Years)
This is the number of years over which the annuity is expected to be paid.
Present Value of the Annuity ($)
This calculator provides the user with two values for the annuity. The present value of an ordinary annuity is used when an annuity provides payments at the end of each period. The present value of an annuity-due is used when the investor purchases an annuity that pays at the beginning of each period.
Present Value Annuity Calculator - Copyright © 2008 - 2011 Money-Zine.com
Disclaimer: These online calculators are made available and meant to be used as a screening tool for the investor. The accuracy of these calculations is not guaranteed nor is its applicability to your individual circumstances. You should always obtain personal advice from qualified professionals.
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