What this calculator does
Deferred annuity present value works out what a stream of future payments is worth today if it does not start for several years. Enter your own figures above and the answer updates as you type: nothing is fixed in the code, so the result reflects exactly the numbers you supply.
The formula this calculator evaluates is printed under the tool and explained below, so you can check the working by hand or reuse it in a spreadsheet.
The formula
The inputs explained
| Field | What to enter |
|---|---|
| Payment per period ($) | A number, measured in your currency. Starts at 1000. |
| Annual interest rate (%) | A number, measured in %. Starts at 6. |
| Payments per year | Choose from Annually, Half-yearly, Quarterly, Monthly. |
| Deferral period before payments start (years) | A number, measured in years. Starts at 5. |
| Years payments continue for | A number. Starts at 15. |
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How the answer changes with payment per period
Every other input is held at the calculator’s starting values while payment per period varies. Select any row to load that scenario into the calculator.
| Payment per period ($) | Present value today | Value at the start of the payout period | Total payments received |
|---|---|---|---|
| 500 | $43,927.61 | $59,251.76 | $90,000.00 |
| 750 | $65,891.41 | $88,877.64 | $135,000.00 |
| 1,000 | $87,855.21 | $118,503.51 | $180,000.00 |
| 1,500 | $131,782.82 | $177,755.27 | $270,000.00 |
| 2,000 | $175,710.42 | $237,007.03 | $360,000.00 |
| 3,000 | $263,565.63 | $355,510.54 | $540,000.00 |