The present value of annuity is calculated using the following formula :

PV = A * [ ( 1 – ( 1 / ( 1 + r ) ^{n} )) / r ]

where

PV = Present value of annuity ; A = Amount of annuity ; r = Discount rate / rate of interest ; n = Number of years ;

In the calculator below insert the values of Amount of annuity, Discount rate and Number of years to arrive at the Present value of Annuity.