# Present Value of Annuity Calculator

Enter the values in the Present Value of Annuity calculator:

Payment per period (PMT): Interest rate in % (r): Number of periods (n):

## How to use the Present Value of Annuity Calculator

Let’s review a simple example where the goal is to derive the Present Value of Annuity given the following information:

• Payment per period (PMT) = 8000
• Interest rate (r) = 6%
• Number of periods (n) = 12

Enter the values in the calculator:

Finally, click on the “Calculate Present Value of Annuity” button, and you’ll get the result of 67070.7515:

## How to Manually Calculate the Present Value of Annuity

You may use the formula below in order to derive the Present Value of Annuity:

```                                            PMT * [1 - 1/(1 + r)n]Present Value of Annuity  =                r
```

Where:

• PMT = Payment per period
• r = Interest rate
• n = Number of periods

For example, suppose that you’d like to calculate the Present Value of Annuity given the information below:

• Payment per period (PMT) = 8000
• Interest rate (r) = 6%
• Number of periods (n) = 12

Once you plug those values in the formula, you’ll get the result of 67070.75:

`                                          PMT * [1 - 1/(1 + r)n]       8000 * [1 - 1/(1+0.06)12]Present Value of Annuity  =                r        =               0.06                     =   67070.75`

To calculate the Future Value of Annuity, you may check the Future Value of Annuity calculator.