How it works
Annuity-due present value = payment × [1−(1+r)^−n]/r × (1+r). Zero rate gives payment × n.
Input definitions
- Beginning-of-period payment
- Enter the value in the labeled unit.
- Discount rate per period (%)
- Enter the value in the labeled unit.
- Number of payments
- Enter the value in the labeled unit.
A worked example
- Beginning-of-period payment
- 100
- Discount rate per period (%)
- 0
- Number of payments
- 12
Assumptions & limits
Planning model using the rates, cash flows and periods entered. Examples are illustrative, not market quotes or personalised financial advice. Taxes, inflation and transaction costs are excluded unless explicitly entered.
Sources & review
Maintained by AnsRio. Methods and examples use automated checks; this does not imply independent professional certification.
Method updated 2026-10-18. Content checked against the stated method and examples. Our verification approach.
Common questions
How is this different from an ordinary annuity?
The payments occur at the beginning of each period, so every payment is discounted for one fewer period.
How does Annuity due present value work?
Annuity-due present value = payment × [1−(1+r)^−n]/r × (1+r). Zero rate gives payment × n.
What should I check before using Annuity due present value?
Planning model using the rates, cash flows and periods entered. Examples are illustrative, not market quotes or personalised financial advice. Taxes, inflation and transaction costs are excluded unless explicitly entered.