Annuity Due Calculator

About this calculator

An annuity due is a series of equal payments made at the beginning of each period rather than at the end, which is the defining difference from an ordinary annuity. Because each payment is received or paid one period earlier, it has more time to earn interest (or costs more to fund), so its present value is higher than an equivalent ordinary annuity by a factor of (1 + r). The formula is PV = PMT × [(1 − (1 + r)^−n) / r] × (1 + r), where PMT is the payment, r is the interest rate per period, and n is the number of periods.

Annuity-due timing shows up in real financial products more often than people expect: rent is typically paid at the start of the month, insurance premiums are often billed in advance, and many lease agreements require the first payment upfront. This calculator takes your payment amount, rate, and number of periods and returns the present value under beginning-of-period timing, so you can value these cash flows correctly instead of underestimating them with an ordinary-annuity formula.