Welcome to the Serrari Present Value Ordinary Annuity Calculator

Want to know how much a series of future payments is worth in today’s money? Our Present Value Ordinary Annuity Calculator helps you find the current value of regular payments made at the end of each period — perfect for understanding the value of pensions, investments, or loan repayments.

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How It Works

The calculator uses the present value ordinary annuity formula:
PV = P × [1 – (1 + r/n)^(-n × t)] ÷ (r/n)

Where:

• PV = Present Value (the amount those future payments are worth today)
  
• P = Regular Payment Amount
  
• r = Annual Discount Rate (in decimal form)
  
• n = Number of compounding periods per year
  
• t = Number of years

An ordinary annuity means each payment is made at the end of a period (for example, at the end of each month or year). This is common in most loan or investment setups.

Example

If you expect to receive KES 10,000 per year for 5 years, and the annual discount rate is 8%:

PV = 10,000 × [1 – (1 + 0.08)^(-5)] ÷ 0.08
PV ≈ KES 39,927

That means the total future payments of KES 50,000 are worth about KES 39,927 today, with a discount (or loss in value due to time) of roughly KES 10,073.

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Parameters Explained

• Regular Payment Amount: The amount you receive or pay at the end of each period.
  
• Annual Discount Rate (%): The yearly rate used to calculate how much future money is worth in today’s terms.
• Payment Frequency: How often payments are made. Choose from monthly, quarterly, semi-annually, annually, weekly, or bi-weekly.
• Number of Years: The total time period for the payments.

Results Explained

• Present Value: The total current value of all future payments.
  
• Total Future Payments: The sum of all payments over time.
  
• Interest Discount: The difference between the total future payments and their present value.
  
• Number of Payments: The total number of payments made during the term.
  
• Discount Percentage: How much the value of future payments decreases due to the discount rate.

Try It Out

Enter your payment amount, discount rate, frequency, and time period, then click Calculate.
The Serrari Present Value Ordinary Annuity Calculator will instantly show you what your future payments are worth today — helping you plan better and make informed financial decisions.

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