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Annuity Calculator
Annuity Calculator
Calculate the future value of a series of payments over time
$0
Total Future Value
Accumulated wealth over time
Total Contributions
$0
Interest Earned
$0
Effective Yield
0%
Growth Over Time
About the Annuity Calculator
An annuity is a series of equal payments made at regular intervals. This calculator finds the future value of yearly contributions, so you can see what a savings plan or retirement annuity could grow to.
How to use the Annuity Calculator
- Enter your Annual Contribution ($) and the Investment Length (Years).
- Enter the expected Annual Return (%).
- Choose the Annuity Type: End of Period (Ordinary) or Beginning of Period (Due).
- Press Calculate Future Value.
Formula and method
Ordinary annuity: FV = PMT × ((1 + r)ⁿ − 1) ÷ r. Annuity due (payments at the start of each period): multiply the result by (1 + r).
Worked example
$5,000 a year at 6% for 20 years grows to about $183,928 as an ordinary annuity, or about $194,964 if each payment is made at the start of the year.
When to use the Annuity Calculator
- Estimating the value of regular payments over time.
- Working out the regular payment needed to reach a goal.
- Comparing a lump sum with a stream of payments.
Common mistakes to avoid
- Mixing up an ordinary annuity (payments at the end of each period) with an annuity due (payments at the start).
- Forgetting the effect of inflation on fixed payments.
Tips
- Payments at the start of the period earn one extra period of interest, so an annuity due is always worth more.
- Returns are assumptions, not guarantees.
Frequently Asked Questions
An ordinary annuity pays at the end of each period (for example a loan payment). An annuity due pays at the start (for example rent).
No. The figure is in future dollars. Use the Inflation Calculator to see what it may be worth in today's money.
Payments happen at the end of each period in an ordinary annuity and at the start in an annuity due. The annuity due is worth slightly more.
A contract in which you pay a lump sum or regular amounts and receive regular income later. Fees and terms vary, so read the contract.