When to use this calculator
Discount equal future payments that begin after an additional waiting period. First payment arrives one period after the deferral ends. All periods must use the same length.
Explore the savings & interest calculators for other questions in this topic. For a related calculation, use the Effective Annual Rate Calculator: Convert a nominal annual rate into an effective rate after compounding.
PUTTING IT INTO PRACTICE
Deferred Annuity Present Value: a worked example
The values below are an illustrative example, not a recommendation. Replace them with measurements or assumptions that match your question.
| Input | Example value |
|---|---|
| Periodic payment | 100 |
| Discount rate per period (%) | 0 |
| Payments (integer) | 12 |
| Extra deferral periods (integer) | 6 |
| Result | 1,200 currency units |
- Check the input labels and enter the example values above.
- Apply the relationship: PV = ordinary annuity PV/(1+r)^deferral.
- The result is 1,200 currency units, rounded for display.
How to interpret your result
First payment arrives one period after the deferral ends. All periods must use the same length.
Match the quoted rate to its compounding convention. A nominal rate, effective annual rate and continuous rate are not interchangeable. Contribution timing also matters when interest is included in a future-value model.
Frequently asked questions
Is a future savings value a forecast?
It is a scenario based on your entered rate and contributions. Changing rates, fees, tax or interrupted payments can change the actual outcome.
When is the deferred annuity present value calculator useful?
Discount equal future payments that begin after an additional waiting period. First payment arrives one period after the deferral ends. All periods must use the same length.
How do I use the deferred annuity present value calculator?
Enter periodic payment, discount rate per period (%), payments (integer), extra deferral periods (integer). The result updates automatically. Use the units shown beside each input; the example values illustrate the method.
Which formula does this calculator use?
PV = ordinary annuity PV/(1+r)^deferral.
What should I check before using the result?
First payment arrives one period after the deferral ends. All periods must use the same length.
How are results rounded?
Scalar numbers display up to six decimal places, with scientific notation for very large or small values. Text, fraction, date and schedule outputs use the format described on the tool. Intermediate calculations use JavaScript floating-point arithmetic. Keep sensible precision for your measurements.
Further reading
For background on this topic, see OpenStax: compound interest ↗. This is a topic reference, not an external review or endorsement of this tool.
Calculators Map editorial process · Updated · Methods and limitations