Annuity Calculator

Use this calculator to estimate the future value of an annuity funded with regular payments.

What this calculator does

The annuity calculator projects how regular payments grow over time at a stated return rate. It supports ordinary annuity and annuity due timing.

It uses:

• regular payment amount
• payment frequency
• annual growth rate
• annuity type

Annuity Formula

FV = PMT × (((1 + r)^n - 1) / r)

Where:

• FV = future value
• PMT = regular payment
• r = periodic return rate
• n = total payment periods

Example calculation

If:

• Monthly payment = 500
• Annual return = 5%
• Years = 20
• Payments = 240

Then:

• Total payments = 120,000
• Payments compound over time
• Future value exceeds payments
• Difference is interest earned

The annuity future value depends on payment timing and return.

What is an annuity?

An annuity is a series of payments made or received over time. In planning, it can describe either saving into a stream or receiving income from one.

Why annuity value matters

• projects regular payment growth
• compares payment frequency
• shows interest earned
• supports income planning

When to use this calculator

• projecting regular investments
• comparing payment timing
• estimating future annuity value
• checking long-term growth

Common mistakes

• confusing ordinary annuity and annuity due
• using annual rate as periodic rate
• ignoring fees or taxes
• assuming returns are guaranteed

Ordinary annuity vs annuity due

Ordinary annuity payments occur at the end of each period. Annuity due payments occur at the beginning.

Annuity due grows slightly more because money is invested earlier.

FAQs

What is an annuity?

An annuity is a stream of regular payments over time.

How do you calculate annuity future value?

Apply the annuity future value formula using payment amount, periodic rate, and number of periods.

What is a good annuity return?

A good return depends on risk, fees, guarantees, and time horizon.

What is the difference between ordinary annuity and annuity due?

Ordinary pays at period end. Annuity due pays at period start.