💰 Annuity Calculator
Calculate annuity future and present value
How to Use This Calculator
Enter Payment Amount
Input the payment amount - the fixed amount paid each period in the annuity.
Enter Interest Rate
Enter the annual interest rate that will be used to calculate future value (compounding) or present value (discounting).
Enter Number of Periods
Enter the number of periods (years) over which payments will be made. This determines how many payments are included in the calculation.
Review Annuity Values
See both future value (what the payments will be worth in the future) and present value (what the payments are worth today).
Formula
Future Value = PMT × [((1 + r)^t - 1) / r]
Present Value = PMT × [1 - (1 + r)^(-t)] / r
Where:
• PMT = Payment amount per period
• r = Interest rate per period
• t = Number of periods
Example Calculation:
If payment $1,000, rate 5%, 10 years:
• Future Value: ~$12,578
• Present Value: ~$7,722
• Total payments: $10,000
• Interest in FV: $2,578
About Annuity Calculator
An annuity calculator computes the future value and present value of an annuity, which is a series of equal payments made at regular intervals. Annuities are used in retirement planning, loan calculations, investment planning, and other financial scenarios. The future value shows what the payments will be worth in the future with compound interest, while the present value shows what the payment stream is worth today (discounted value). This calculator helps you understand both perspectives of annuity valuation.
When to Use This Calculator
- Retirement Planning: Calculate value of regular retirement savings
- Loan Analysis: Understand present value of loan payments
- Investment Planning: Plan for regular investment contributions
- Financial Planning: Analyze regular payment streams
Understanding Annuities
- Fixed Payments: Equal payments made at regular intervals
- Future Value: Value of payments in the future (with compound interest)
- Present Value: Value of payments today (discounted value)
- Ordinary Annuity: Payments made at end of period (most common)
Why Use Our Calculator?
- ✅ Dual Calculations: See both future and present values
- ✅ Retirement Planning: Plan for regular savings
- ✅ Loan Analysis: Understand loan payment values
- ✅ Financial Planning: Analyze payment streams
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
What is an annuity?
An annuity is a series of equal payments made at regular intervals (e.g., monthly, quarterly, annually). Annuities are used in retirement planning, loans, investments, and insurance. Common examples include retirement savings contributions, loan payments, lease payments, and pension payments.
What's the difference between future value and present value?
Future value shows what the annuity payments will be worth in the future with compound interest. Present value shows what the payment stream is worth today (discounted value). Future value is used for savings planning (how much will I have?), while present value is used for loan analysis or determining today's value of future payments.
What is an ordinary annuity vs. annuity due?
An ordinary annuity has payments made at the end of each period (most common). An annuity due has payments made at the beginning of each period. This calculator assumes ordinary annuity (payments at end of period). For annuity due, multiply the result by (1 + r) to account for the earlier payment timing.
How is this different from a growing annuity?
A regular annuity has fixed payments (same amount each period), while a growing annuity has payments that increase by a fixed percentage each period. Use a regular annuity calculator for fixed payments, and a growing annuity calculator for payments that grow over time (e.g., with inflation or salary increases).