Excel Formulas to Calculate the Present Value of Annuity ~ Useful Tricks!!
Tags: excelformula, excelformulas
Published: 2021-06-30 10:46:42

---
title: Excel Formulas to Calculate the Present Value of Annuity ~ Useful Tricks!!
published: true
date: 2021-06-24 08:00:51 UTC
tags: ExcelFormula,Excelformulas
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---

So far we have learned the formulas to [**calculate the future value of an annuity in Excel**](https://geekexcel.com/excel-formulas-to-calculate-the-future-value-of-annuity/). Likewise, here we will show the formulas to **calculate the present value of an annuity in Excel**. Let’s get them below!! Get an official version of ** MS Excel**  from the following link: [https://www.microsoft.com/en-in/microsoft-365/excel](https://www.microsoft.com/en-in/microsoft-365/excel)

[![Calculate present value of annuity](https://geekexcel.com/wp-content/uploads/2021/06/Calculate-present-value-of-annuity.png)](https://geekexcel.com/excel-formulas-to-calculate-the-present-value-of-annuity/calculate-present-value-of-annuity/#main)<figcaption id="caption-attachment-47894">Calculate the present value of an annuity</figcaption>

## Generic Formula:

- You can use the below formula to calculate the present value of an annuity in Excel.

**=PV(rate,periods,-payment,0,0)**

## Syntax Explanations:

- **PV** – In Excel, the **PV function** will help to return the present value of an investment.
- **Rate** – It represents the interest rate.
- **Periods** – It specifies the time periods.
- **Payment** – It represents the total amount.
- **Comma symbol (,)** – It is a separator that helps to separate a list of values.
- **Parenthesis ()** – The main purpose of this symbol is to group the elements.

## Practical Example:

Refer to the below example image.

- Here, we will enter the input values in **Column B** and **Column C**.
- Now, we are going to calculate the annual present value.

![Input Ranges](https://geekexcel.com/wp-content/uploads/2021/06/Input-Ranges-66.png)<figcaption id="caption-attachment-47896">Input Ranges</figcaption>

- Select any cell and apply the above-given formula.

![Enter the formula](https://geekexcel.com/wp-content/uploads/2021/06/Enter-the-formula-80.png)<figcaption id="caption-attachment-47895">Enter the formula</figcaption>

- Finally, press the ** ENTER**  key, you can get the result as shown below.

![Result](https://geekexcel.com/wp-content/uploads/2021/06/Result-67.png)<figcaption id="caption-attachment-47893">Result</figcaption>

## Verdict:

In this chapter, we have described the formulas to **calculate the future value of an annuity in Excel**. Please share your **query** below in the **comment** box. We will assist you.

Thank you so much for visiting  **[Geek Excel](https://geekexcel.com/)!! **If you want to learn more helpful formulas, check out [**Excel Formulas**](https://geekexcel.com/excel-formula/) **!! **

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