Money & shopping
Present value of regular payments
Discount a fixed series of equal end-of-period payments.
A clear answer. Here’s how.
Ordinary annuity present value = payment × [1 − (1+r)^−n]/r. At zero rate, present value is payment × n. Payments occur at each period-end and the discount rate matches that period. Excludes fees, taxes and variable payments.
See a worked example
Worked example
A fixed demonstration, separate from the values you enter above.
- Payment each period
- 100
- Discount rate each period (%)
- 0.5
- Number of payments
- 120
Example result
- Present value
- 9,007.35
- Undiscounted payment total
- 12,000.00