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# Annuity Payment (PV)

Annuity Payment PV Calculator (Click Here or Scroll Down)

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The annuity payment formula is used to calculate the periodic payment on an annuity. An annuity is a series of periodic payments that are

received at a future date. The present value portion of the formula is the initial payout, with an example being the original payout on

an amortized loan.

The annuity payment formula shown is for ordinary annuities. This formula assumes that the rate does not change, the payments stay

the same, and that the first payment is one period away. An annuity that grows at a proportionate rate would use the growing annuity

payment formula. Otherwise, an annuity that changes the payment and/or rate would need to be adjusted for each change. An annuity that

has its first payment due at the beginning would use the annuity due payment formula and the deferred annuity payment formula would have

a payment due at a later date.

The annuity payment formula can be used for amortized loans, income annuities, structured settlements, lottery payouts(see

annuity due payment formula if first payment starts immediately), and any other type of constant periodic payments.

### Per Period

The rate per period and number of periods should reflect how often the payment is made. For example, if the payment is monthly, then the

monthly rate should be used. Likewise, the number of periods should be the number of months. This concept is important to remember with all

financial formulas.

#### Annuity Payment Formula Explained

The annuity payment formula can be determined by rearranging the PV of annuity formula.

After rearranging the formula to solve for P, the formula would become:

This can be further simplified by multiplying the numerator times the reciprocal of the denominator, which is the formula shown at the top

of the page.

Return to Top

__Formulas related to Annuity Payment__- PV of Annuity
- Loan Payment
- Equivalent Annual Annuity
- Annuity Payment Factor
- Annuity Payment (FV)
- Annuity Due Payment (PV)

New to Finance?

**Start with the Basics**

- Present Value
- Future Value
- Compound Interest
- Simple Interest

## Annuity Payment Calculator (PV)

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*The content of this site is not intended to be financial advice.

This site was designed for educational purposes.

The user should use information provided by any tools or material at his

or her own discretion, as no warranty is provided.

When considering this site as a source for academic reasons, please

remember that this site is not

subject to the same rigor as academic journals, course materials,

and similar publications.

Feel Free to Enjoy!

Contact us at:

[email protected]

Finance Formulas

- Home
- General Finance
- Banking
- Stocks/Bonds
- Corporate Finance
- Financial Markets
- Alphabetical List

# Annuity Payment (PV)

Annuity Payment PV Calculator (Click Here or Scroll Down)

report this ad

The annuity payment formula is used to calculate the periodic payment on an annuity. An annuity is a series of periodic payments that are

received at a future date. The present value portion of the formula is the initial payout, with an example being the original payout on

an amortized loan.

The annuity payment formula shown is for ordinary annuities. This formula assumes that the rate does not change, the payments stay

the same, and that the first payment is one period away. An annuity that grows at a proportionate rate would use the growing annuity

payment formula. Otherwise, an annuity that changes the payment and/or rate would need to be adjusted for each change. An annuity that

has its first payment due at the beginning would use the annuity due payment formula and the deferred annuity payment formula would have

a payment due at a later date.

The annuity payment formula can be used for amortized loans, income annuities, structured settlements, lottery payouts(see

annuity due payment formula if first payment starts immediately), and any other type of constant periodic payments.

### Per Period

The rate per period and number of periods should reflect how often the payment is made. For example, if the payment is monthly, then the

monthly rate should be used. Likewise, the number of periods should be the number of months. This concept is important to remember with all

financial formulas.

#### Annuity Payment Formula Explained

The annuity payment formula can be determined by rearranging the PV of annuity formula.

After rearranging the formula to solve for P, the formula would become:

This can be further simplified by multiplying the numerator times the reciprocal of the denominator, which is the formula shown at the top

of the page.

Return to Top

__Formulas related to Annuity Payment__- PV of Annuity
- Loan Payment
- Equivalent Annual Annuity
- Annuity Payment Factor
- Annuity Payment (FV)
- Annuity Due Payment (PV)

New to Finance?

**Start with the Basics**

- Present Value
- Future Value
- Compound Interest
- Simple Interest

## Annuity Payment Calculator (PV)

**Alphabetical Index:**- A-C
- D-F
- G-I
- J-L
- M-P
- Q-S
- T-V
- W-Z

- Home
- Privacy Policy

*The content of this site is not intended to be financial advice.

This site was designed for educational purposes.

The user should use information provided by any tools or material at his

or her own discretion, as no warranty is provided.

When considering this site as a source for academic reasons, please

remember that this site is not

subject to the same rigor as academic journals, course materials,

and similar publications.

Feel Free to Enjoy!

Contact us at:

[email protected]