Discount each equal payment
An ordinary annuity’s present value is PMT × (1 − (1+i)^−n)/i. The first payment occurs one period from now, so even that first amount is discounted. Later payments have progressively smaller present values at a positive rate. The table displays each payment at its own time index.
What changes with an annuity due?
A beginning-period annuity includes a payment at time zero. That first amount is not discounted, and every other payment moves one period earlier. Multiplying the ordinary result by 1+i gives the annuity-due result. At 0%, timing has no effect: twelve payments of $100 have a present value of $1,200.
Equal versus unequal payments
This page assumes one fixed payment, one periodic discount rate and a whole number of equally spaced periods. It does not value an escalating or irregular stream by pretending every amount is equal. For changing payments, enter explicit rows in the cash-flow present-value calculator.
Questions about this calculation
How can I check the inputs behind the result?
Open “Show calculation & assumptions” for the formula and timing conventions, then inspect the breakdown. Export CSV to keep the last calculated inputs and numerical results together.
Does this include taxes or changing market returns?
No tax calculation or variable market-return path is included. The task-specific assumptions above describe the scope. Calculated values are conditional on the inputs, not personalized recommendations.
Learn more
Start with the step-by-step future value formula guide.
Open the formula guide →How to calculate future value · Spreadsheet calculations · All learning guides
Use these figures to explore assumptions. Actual interest, returns, fees, taxes and purchasing power can differ.