Annuity Calculator
Find the future and present value of a stream of equal payments given a rate and number of periods.
Example
Saving $500 at the end of each period for 20 periods at 5% per period:
FV = 500 × ((1.0520 − 1) / 0.05) = 500 × 33.066 = $16,532.98. You pay in $10,000, so interest earned is $6,532.98. The present value is 500 × ((1 − 1.05-20) / 0.05) = $6,231.11.
How it works
Enter your periodic payment, the periodic interest rate, and the number of periods, then pick whether payments occur at the end (ordinary) or start (due) of each period. The tool shows both the future value (what the payments grow to) and the present value (what they're worth today).
Good to know
This Annuity Calculator turns a stream of equal payments into two numbers that matter: the future value (what those payments grow to by the end) and the present value (what the same stream is worth in today's dollars). You enter a payment per period, an interest rate per period, and the number of periods, then choose whether the payments land at the end of each period (ordinary) or the start (due). It's aimed at anyone weighing a savings plan, a pension or settlement payout, or a lump-sum-versus-installments choice and wanting a quick, transparent estimate.
Reach for it when the cash flows are level and evenly spaced. Use future value to answer "if I keep contributing, how much will I have?" and present value to answer "what lump sum today is equivalent to this stream of payments?" The most common real use is comparing offers: a buyout that hands you a single amount now can be checked against the present value of the payments you'd otherwise receive, as long as you pick a rate that reflects what your money could reasonably earn.
Read the result alongside the breakdown beneath it. "Total paid in" is your own contributions (payment times periods), and "Total interest (FV)" is the future value minus what you put in, so you can see how much of the end balance is growth versus your own money. The two bars split principal against interest visually; switching to "Due" nudges every figure up by a factor of (1 + rate) because each payment gets one extra period to compound.
The single most important habit is unit matching: the rate, the payment, and the period count must all use the same frequency. For a monthly plan, divide the annual rate by 12 and count months, not years. A common error is entering an annual rate with a monthly payment, which inflates the answer wildly. Also note the model assumes a fixed rate and an unchanging payment, so it won't reflect variable returns, fees, taxes, or inflation.
Frequently asked questions
What is the difference between an ordinary annuity and an annuity due?
In an ordinary annuity payments are made at the end of each period; in an annuity due they are made at the start. Because each payment in an annuity due has one extra period to earn interest, both its future and present value are higher by a factor of (1 + rate).
How do I use a monthly annuity in this calculator?
Use matching units: enter the monthly payment, the monthly interest rate (annual rate divided by 12), and the total number of months. For example, a 6% annual rate over 5 years means a 0.5% rate and 60 periods.
Is my data uploaded anywhere?
No — this calculator runs entirely in your browser; nothing is uploaded.
Is this financial advice?
No. These are educational estimates — consult a qualified financial professional before making decisions.
People also ask
What is an annuity in simple terms?
An annuity is a series of equal payments made at regular intervals, such as a fixed monthly contribution to savings or a steady payout from a pension or insurance contract. Each payment can earn interest between now and the end of the schedule, which is what the calculator measures.
What's the difference between future value and present value of an annuity?
Future value is the total the payments grow to by the end of the schedule, including accumulated interest. Present value is the single lump sum today that is financially equivalent to receiving all those payments, discounted back at the same rate.
What interest rate should I enter for an annuity calculation?
Enter the rate per period that matches your situation: for a savings plan use the expected periodic return, and for valuing a payout stream use a discount rate reflecting what you could otherwise earn. The rate and the number of periods must use the same time unit.
Why does an annuity due give a higher value than an ordinary annuity?
In an annuity due each payment occurs at the start of the period, so every payment has one extra period to earn interest. This raises both the future and present value by a factor of (1 + rate) compared with an ordinary annuity.
How do I calculate the future value of an annuity by hand?
For an ordinary annuity, future value = payment multiplied by ((1 + rate)^periods minus 1) divided by rate. For an annuity due, multiply that result by (1 + rate). Present value uses payment multiplied by (1 minus (1 + rate)^-periods) divided by rate.
Can this calculator handle inflation, taxes, or fees?
No. It assumes a constant rate and a fixed payment with no adjustments for inflation, taxes, or fees, so the figures are nominal estimates. To approximate real value, you can use an inflation-adjusted rate, but the tool itself does not apply those factors.
What happens if the interest rate is zero?
With a zero rate there is no compounding, so the future value and present value both equal the payment multiplied by the number of periods. In that case total interest is zero and the result simply reflects the money paid in.
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