Finance
Present Value of Annuity
Present value of recurring payments.
Formula
Formula
PV = PMT · 1 − (1 + r)−nr
Variables
| Symbol | Definition | Type & range | Units | Role |
|---|---|---|---|---|
| PMT | payment per period | real number (ℝ) | — | input |
| r | rate per period | real number (ℝ) | — | input |
| n | periods | real number (ℝ) | — | input |
Try it yourself
Interactive calculator
Worked examples
Example 1
Givenpayment = 100, rate/period (%) = 0.5, periods = 120
Result9007.345333
Example 2
Givenpayment = 1000, rate/period (%) = 0.4, periods = 360
Result190597.6813