Equivalent Annual Annuity Calculator

The payment that the annuity will produce each period.

Equivalent annual annuity calculator. C r NPV 1 - 1 r-n. Under the EAA approach Project Y would be selected since it has the higher equivalent annual annuity value. There are a lot of different flavors of annuity contracts and they can be complex.

C r NPV 1 - 1 r -n where C - Equivalent Annuity Cash Flow NPV - Net Present Value r - Rate Per Period n - Number of Periods. The net present value of an investment is shown as a series of equal cash flows for the length of the investment. EAA r x NPV1 - 1 r-n EAA x 1 - 1 -EAA x 1 - 1 -EAA 1 - -EAA 1 - EAA EAA Equivalent Annual Annuity Calculator Input Values.

Please use our Annuity Calculator to estimate the end balance of an annuity for the accumulation phase. N Number of payments per year. C Equivalent Annuity Cash Flow.

Free annuity calculator to forecast the growth of an annuity with optional annual or monthly additions using either annuity due or immediate annuity. C r NPV 1 - 1 r -n. N Number of periods.

About Press Copyright Contact us Creators Advertise Developers Terms Privacy Policy Safety How YouTube works Test new features Press Copyright Contact us Creators. Calculation of capital budgeting Equivalent Annual Annuity Approach is made easier here. To calculate just select the initial payment interval you desire and fill in any 3 other boxes.

This calculator can estimate the annuity payout amount for a fixed payout length or estimate the length that an annuity can last if supplied a fixed payout amount. An annuity running over 20 years with a starting principal of 25000000 and growth rate of 8 would pay approximately 209110 per month. Thus at a 2 percent growth rate a 100000 annuity pays 50588 per month for 20 years.