Finance Calculators

Present Value of Annuity Calculator

Calculate the present value of a series of equal future payments, such as a pension or annuity, discounted back to today's dollars.

Present value —

Total nominal payments —

About the Present Value of Annuity Calculator

The present value of an annuity tells you what a stream of equal future payments — like a pension, structured settlement or lease — is worth in today's dollars, accounting for the time value of money.

Formula: PV = PMT × [1 − (1+r)^-n] ÷ r, where PMT is the payment amount, r is the discount rate per period, and n is the total number of payments.

This is the reverse of the standard annuity future-value calculation — it's commonly used to value pensions, compare a lump-sum buyout offer against ongoing payments, or price structured settlements.