Present Value of Annuity Calculator
Use our quick and handy Present Value of an Annuity Calculator to calculate the Present Value of an Annuity. This calculator requires annual cash flows and assumes annual compounding. The Present Value of an Annuity is estimated as:
![\[PV = \frac{CF}{r} \left(1 - \frac{1}{(1+r)^n} \right)\]](https://www.ferventlearning.com/wp-content/ql-cache/quicklatex.com-e13f9576053c8bff7013d52d106a5a45_l3.svg?495a33&495a33 "Rendered by QuickLaTeX.com")
Handy Hacks
Make sure your cash flows are annual ones. The same goes for the discount rate you use.
If you’d like us to incorporate monthly or other frequencies into the calculator, let us know.