# How do you Calculate the Value of an Annuity?

An annuity can be valued as a **present value** or a **future value**.

You can calculate the **present value of an annuity** or the **future value of an annuity** using a formula or on a calculator.

It is important to understand the formula to be able to understand the way to do your calculation.

Here are the basic formula to perform the calculations. **Remember calculate the ‘factor’ then times it by the annuity amount.**