Annuity Payment Calculator
Enter values locally; fields start blank.
Enter values locally; fields start blank.
Result
This idealized local model assumes equal cash flows and a fixed rate. It does not predict outcomes or provide financial advice.
Source: OpenStax, Principles of Finance 2e, 8.2 Annuities — https://openstax.org/books/principles-finance-2e/pages/8-2-annuities
A QUICK WALKTHROUGH
How to use this tool
- Enter the present value, periodic rate and a positive whole number of periods.
- Choose ordinary annuity or annuity due.
- Calculate and review the payment.
Formula
PMT = PV × r ÷ [1 − (1 + r)^−n]. For an annuity due, divide the ordinary payment by (1 + r). When r = 0, payment = PV ÷ n.
Model assumptions
This idealized local model assumes equal cash flows and a fixed rate. It does not predict outcomes or provide financial advice.
GOOD TO KNOW
Common questions
What is the difference between ordinary and due?
An ordinary annuity pays at the end of each period; an annuity due pays at the beginning.