If you want to **calculate Annuity due**, Excel can come really handy. **Excel** has some functions that can help to **calculate annuity due**. The main objective of this article is to explain how to **calculate annuity due** in Excel.

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## What Is Annuity Due?

A recurring payment that is made at the start of each period is known as an **annuity due**. It provides the holder with a stream of regular interest payments.

The current price of a series of cash flows from an **annuity due **that starts right away is the **present value of annuity due**. At the start of each period, the** annuity payments** are distributed.

The formula for calculating the **present value of annuity due** is,

**Present Value of Annuity Due = P+P[{1-(1+r)**^{-(n-1)}**}/r]**

Where,

**P = Payment Per Period**

**r = Rate of Interest**

**n = Periods**

The **future value of annuity **is a tool to aid in analyzing a financial investment’s potential for cash flow. The main purpose of the** future value of an annuity due i**s to determine how much a particular sequence of annuity payments would be worth at a specific future date when combined with a specific **interest rate**.

The formula for the **future value of annuity due **is,

**Future Value of Annuity Due = P*{(1+r)**^{n}**-1}*(1+r)/r**

Where,

**P = Payment Per Period**

**r = Rate of Interest**

**n = Periods**

## 3 Simple Ways to Calculate Annuity Due in Excel

To explain this article I have taken the following dataset that contains the **Amount Details** of **Payment Per Period**, **Rate of Interest**, and **Periods**. I will calculate the **annuity due** for this dataset.

### 1. Using Generic Formula to Calculate Annuity Due in Excel

In this first method, I will use the **generic formula** to calculate **annuity due** in Excel. I will calculate both the** present value** and **future value of annuity due**.

#### 1.1. Calculating Present Value of Annuity Due

In this example, I will use the **generic formula** to calculate the **present value of annuity due**. Suppose, your **Payment Per Period** is **$4000**, the **Rate of Interest** is **5%** and there is a total of **5 Periods**. Now, I will show you how to calculate the **present value of annuity due **in Excel using these data.

Let’s see the steps.

**Steps:**

- Firstly, select the cell where you want your
**present value of annuity due**. Here, I selected cell**C9**. - Secondly, in cell
**C9**write the following formula.

`=C5+C5*((1-(1+C6)^-(C7-1))/C6)`

**Formula Breakdown**

- Here, the formula will
**raise (1+C6)****to the power of -(C7-1)**. - Then,
**subtract**the result from**1**. - Next, It will
**divide**the result by**C6**. - After that, it will
**multiply**it by**C5**. - Finally, it will
**sum**the previously gained result with**C5**and return the**present value of annuity due**.

- Finally, press
**ENTER**to get the result.

**Read More: ****How to Calculate Annuity in Excel (5 Practical Examples)**

#### 1.2. Calculating Future Value of Annuity Due

In this example, I will use the **generic formula** to calculate the **future value of annuity due**. Suppose, your **Payment Per Period** is **$4000**, the **Rate of Interest** is **5%** and there is a total of **5 Periods**. Now, I will show you how to calculate the **future value of annuity due **in Excel using these data.

Let’s see the steps.

**Steps:**

- Firstly, select the cell where you want to calculate your
**future value of annuity due**. Here, I selected cell**C9**. - Secondly, in cell C9 write the following formula.

`=C5*((1+C6)^C7-1)*(1+C6)/C6`

**Formula Breakdown**

- Here, the formula will
**raise (1+C6) to the power of C7**. And then**subtract 1**from it. - Next, It will
**multiply**the result by**C5**and**(1+C6)**. - After that, It will
**divide**the previously gained result by**C6**.

- Finally, press
**ENTER**to get the result.

**Read More: ****How to Calculate Annuity Factor in Excel (2 Ways)**

### 2. Use of PV Function to Calculate Present Value of Annuity Due in Excel

In this method, I will explain how to calculate the **present value of annuity due** in Excel with help of **the PV function**.

For example, your **Payment Per Period** is **$4000**, the **Rate of Interest** is **5%** and there is a total of **5 Periods**. Now, I will **calculate the present value of annuity **and then the **present value of annuity due **with this dataset.

Let’s see the steps.

**Steps:**

- Firstly, select the cell where you want your
**present value of annuity**. Here, I selected cell**C9**. - Secondly, in cell
**C9**write the following Formula.

`=PV(C6,C7,-C5,0,0)`

Here, in the** PV **function, I selected **C6** as **rate**, **C7 **as **nper**, **-C5 **as **pmt**, **0 **as **FV**, and **0 **for **type**. Now, the formula will return us the value of** the present value of annuity**.

- Finally, press
**ENTER**to get the**present value of annuity**.

Now, I will calculate the **present value of annuity due**.

- Firstly, select the cell where you want your
**present value of annuity due**. Here, I selected cell**C10**. - Secondly, in cell
**C10**write the following Formula.

`=C9*(1+C6)`

Here, the formula will **sum C6** with **1** and then, **multiply** the result by **C9**. This will return you the **present value of annuity due**.

- Finally, press
**ENTER**to get the**present value of annuity due**.

**Read More: ****How to Do Ordinary Annuity in Excel (2 Methods)**

### 3. Using FV Function to Calculate Future Value of Annuity Due in Excel

In this method, I will explain how to calculate the **future value of annuity due** in Excel with help of **the FV function**.

For example, your **Payment Per Period** is **$4000**, the **Rate of Interest** is **5%** and there is a total of **5 Periods**. Now, I will calculate the **future value of annuity** and then the **future value of annuity due **with this dataset.

Let’s see the steps.

**Steps:**

- Firstly, select the cell where you want your
**future value of annuity**. Here, I selected cell**C9**. - Secondly, in cell
**C9**write the following Formula.

`=FV(C6,C7,-C5,0,0)`

Here, in the** FV **function, I selected **C6** as **rate**, **C7 **as **nper**, **-C5 **as **pmt**, **0 **as **PV**, and **0 **for **type**. Now, the formula will return us the value of** the future value of annuity**.

- Finally, press
**ENTER**to get the**future value of annuity**.

Now, I will calculate the **future value of annuity due**.

- Firstly, select the cell where you want your
**future value of annuity due**. Here, I selected cell**C10**. - Secondly, in cell
**C10**write the following Formula.

`=C9*(1+C6)`

Here, the formula will **sum C6** with **1** and then, **multiply** the result by **C9**. This will return you the **future value **of an** annuity due**.

- Finally, press
**ENTER**to get the**future value**of an**annuity due**.

**Read More: ****How to Calculate Future Value of Growing Annuity in Excel**

## Practice Section

Here, I have provided a practice sheet for you to practice how to **calculate annuity due** in Excel.

## Conclusion

In this article, I tried to cover how to **calculate annuity due** in Excel. Here, I explained** 3 **different methods. If you find it helpful, you can check **ExcelDemy** for more articles like this. More importantly, I suggest you practice by yourself to get perfection. And lastly, if you have any questions or any suggestions don’t forget to let me know in the comment section below.