Annuity present value factor

Compute current value from annual payment, rate, and years using annuity present-value formulas.

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Calculation specification

Reviewed on:

Formula basis

The factor is {1−(1+r)^−n}/r, or n when r=0. Present value equals the annual amount times this factor.

Calculation method

Values a fixed annual amount paid or received at each year-end by applying an annuity present value factor.

Exclusions and checks required

  • Cash flows are at year-end under a constant rate; beginning-of-year payments are unsupported.
  • Credit risk, tax, fees, inflation, and early termination are excluded.

Example input:：Valuing JPY 1.2 million annually for 20 years at 3%

annualPaymentMan
120
annualRate
3
years
20
digits
6
rounding
halfUp

The result is a constant-discount-rate value for year-end payments.

FAQ

Who is this calculator for? Annuity present value factor

Compute current value from annual payment, rate, and years using annuity present-value formulas.

What values should I enter?

Applies to: Financial factors / Annuity present-value factor = {1 − (1+r)^−n} ÷ r

How should I interpret this estimate?

Values a fixed annual amount paid or received at each year-end by applying an annuity present value factor.

How to use

  1. Enter your input values and press Calculate.
  2. Review the result and compare it with expected context.
  3. The factor is {1−(1+r)^−n}/r, or n when r=0. Present value equals the annual amount times this factor.