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.