PVANNUITY( ) function

Returns the present value of a series of payments.


PVANNUITY(rate, periods, payment <,type>)



Numeric. The interest rate per period.


Numeric. The total number of payment periods in an annuity.


Numeric. The payment made at the end of each period. It cannot change over the life of the annuity.


Optional. Numeric constant. Specify 0 if payments are due at the end of the period, or 1 if payments are due at the beginning of the period. If the type parameter is omitted the default value of 0 will be used.




You can use this function when you want to determine what a series of future payments is worth now. For example, when you borrow money, the loan amount is the present value to the lender.

The result is returned to two decimal places.

This function assumes a future value of zero and calculates the result based on payments at the end of the period.


At an interest rate of 8% per annum, to calculate the value of receiving $500 a month for the next 20 years, specify:

PVANNUITY(0.08/12, 12*20, 500)

returns 59777.15.

Related reference
FVANNUITY( ) function
FVSCHEDULE( ) function
RATE( ) function

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