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.

**Table of Contents**Expand

## 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 investmentâ€™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**

## How to Calculate Annuity Due in Excel: 3 Simple Ways

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**.Â 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.

Letâ€™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 ofÂ annuity due**.

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

#### 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**.Â 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.

Letâ€™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. 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.

Letâ€™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

### 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.

Letâ€™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**.

## Practice Section

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

**Download Practice Workbook**

## Conclusion

In this article, I tried to cover how to **calculate annuity due** in Excel. Here, I explained** 3 **different methods. More importantly, I suggest you practice by yourself to get perfection. And lastly, if you have any questions or any suggestions donâ€™t forget to let me know in the comment section below.

## Related Articles

- How to Calculate Deferred Annuity in Excel
- How to Calculate Growing Annuity in Excel
- How to Calculate Equivalent Annual Annuity in Excel

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