Net Present Value Annuity
Calculator
Results
- Present value of cash flows
- 33,550.406994
- Net present value
- 3,550.406994
- Annuity discount factor
- 6.710081
Investing results
| Present value of cash flows | 33,550.406994 |
| Net present value | 3,550.406994 |
| Annuity discount factor | 6.710081 |
formula-map diagram
- Present value of cash flows
- 33,550.406994
- Net present value
- 3,550.406994
- Annuity discount factor
- 6.710081
Investing relationship
Formula
NPV = C × [1 − (1 + r)^−n] ÷ r − initial investment= 33550.406994707
Note
This is not investment advice. It is a simplified model: it applies the displayed standard formula to the figures you entered, ignores taxes, fees, currency effects and credit risk, and assumes cash flows arrive exactly as scheduled. Real markets do not behave that way, and past or projected returns do not guarantee future results. Check the assumptions and consult a licensed adviser before acting on any figure.
More in Investing and markets
See all →Frequently asked questions
What does the net present value of an annuity represent?+
It represents today's value of a series of equal future payments, discounted back at a specified rate, showing what that stream of payments is worth if you received it all as a lump sum right now instead.
Why is this called 'net' present value if there's no initial investment cost entered?+
In a pure annuity present value calculation, 'net' is sometimes used loosely to mean the discounted value of just the cash inflows; a true NPV calculation for a project would also subtract an initial upfront cost, so check which variant you actually need for your comparison.
How does payment timing (ordinary annuity vs. annuity due) affect the result?+
An ordinary annuity assumes payments occur at the end of each period, while an annuity due assumes payments at the start of each period — an annuity due produces a higher present value because each payment is discounted for one fewer period.
Why does the discount rate matter so much for annuity valuation?+
The discount rate reflects the opportunity cost of not having the money now, so a higher rate reduces the present value of every future payment, sometimes dramatically for long payment streams — small changes in assumed rate can shift the valuation significantly.
Can this calculation be used to value a loan or a stream of lease payments?+
Yes, this same present-value-of-annuity logic underlies loan payment calculations, lease valuations, and pension/structured settlement valuations, anywhere a fixed periodic payment stream needs to be expressed as a single equivalent value today.