### Present Value of an Annuity Due Calculator

### What is a Present Value (PV) of an annuity due?

Present value (PV) of an annuity due is a financial calculation used when determining the “today” value of a set of annuity payments that occur each compounding period, when the payments occur at the beginning of the compounding period (as opposed to a regular annuity, where the payments occur at the end of the compounding period).

As this calculator is structured to parallel the results of a financial calculator, inputs and outputs will be similar – for example, a negative present value (or payment) means an outflow as opposed to a directly negative number.

### How is the Present Value of an Annuity Due calculated?

The PV of an annuity due is calculated through a financial formula used with the time value of money.

### Example

We will receive $100 each year for the next 12 years. The interest rate at the moment is 2.2% compounded annually. What is the present value of this annuity?

### What are periods?

Periods are the number of times that compounding (and payments) take place.### What is the rate?

The rate is the amount of interest earned per compounding period.### What is Payment (PMT)?

A payment is an amount either deposited or withdrawn at each compounding period. A negative number designates an amount that is deposited, while a positive one withdrawn. For example, if $100 is deposited each compounding period, it would be entered as '-100', while if $75 was payed out each compounding period, it would be entered as '75'.### Sources and External Resources

- Wikipedia – Time Value of Money
- Wikipedia – Present Value
- Accounting Coach – Present Value of a Single Amount
- Math is Fun – Present Value

### More Time Value of Money Calculators

- Present Value (PV) Calculator
- Net Present Value (NPV) Calculator
- Present Value of a Growing Perpetuity (Gordon Growth Model) Calculator
- Future Value (FV) Calculator
- Net Future Value (NFV) Calculator
- Number of Periods Calculator
- Payment (PMT) Calculator
- Rate of Return Calculator
- Internal Rate of Return (IRR) Calculator
- Modified Internal Rate of Return (MIRR) Calculator
- Simple Dietz Method Calculator