Equivalent Annual Annuity (EAA) Calculator

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Posted by Dinesh on

The Equivalent Annual Annuity (EAA) for an investment is the level annuity over the investment's life that has a present value equal to the investment's net present value. The EAA calculator tool is used to calculate the net present value of an investment as a series of equal cash flows for the length of the investment.

EAA - Equivalent Annuity Cash Flow Calculation

Net Present Value (NPV) :
Rate per Period (r) [in %] :
Number of Periods (n) [in years]:
Equivalent Annuity Cash Flow (C) :

Formula:

C = r × (NPV) / 1 - (1 + r)-n

Where,
NPV - Net Present Value,
r - Rate Per Period,
n - Number of Periods
C - Equivalent Annuity Cash Flow
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