Present Value Annuity Tables

The purpose of the present value annuity tables is to make it possible to carry out annuity calculations without the use of a financial calculator.

They provide the value now of 1 received at the end of each period for n periods at a discount rate of i%.

The present value of an annuity formula is:

PV = Pmt x (1 - 1 / (1 + i)n) / i

As can be seen present value annuity tables can be used to provide a solution for the part of the present value of an annuity formula shown in red. Additionally this is sometimes referred to as the present value annuity factor.

PV = Pmt x Present value annuity factor

Present Value Annuity Table Example

As an illustration of the use of the tables we can calculate the present value of 5,000 received at the end of each year for 12 years, if the discount rate is 7%?

Pmt = 5,000
n = 12
i = 7%
PV = Pmt x (1 - 1 / (1 + i)n) / i
PV = 5,000 x (1 - 1 / (1 + 7%)12) / 7%
PV = 5,000 x Present value of annuity factor for n = 12, i = 7%
PV = 5,000 x 7.9427
PV = 39,713.50

It is important to realize that the present value annuity factor of 7.9427 is found using the tables below as follows. Values referred to are highlighted in yellow.

  1. Starting at the left hand side. Find the number of periods n. In this case 12.
  2. Follow along this row until you reach the column representing the discount rate. In this example 7%
  3. Note the present value annuity factor. In this example 7.9427.

PV Annuity Tables Download

Additionally the present value of annuity table is available for download in PDF format by following the link below.

PV annuity tables are one of many time value of money tables, discover another at the links below.

Notes and major health warnings
Users use these present value annuity tables at their own risk. We make no warranty or representation as to its accuracy. Additionally we are covered by the terms of our legal disclaimer, which you are deemed to have read. This is an example of an annuity factor table that you might use when considering how to calculate annuity values. It is purely illustrative of PV annuity tables. This is not intended to reflect general standards or targets for any particular business, company or sector. If you do spot a mistake in these time value of money tables, please let us know and we will try to fix it.
Last modified April 6th, 2023 by Michael Brown

About the Author

Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University.

You May Also Like