📊 Future Value of Annuity Calculator
Calculate future value of regular payments
Enter periodic rate (monthly, annual, etc.)
How to Use This Calculator
Enter Payment Per Period
Input the payment amount made each period (monthly, quarterly, etc.). This is the fixed amount you'll invest or save each period.
Enter Interest Rate Per Period
Enter the interest rate per period (not annual rate). For monthly payments, divide annual rate by 12. For quarterly, divide by 4. This is the rate at which your money grows each period.
Enter Number of Periods
Enter the total number of periods (payments) you'll make. For example, if paying monthly for 10 years, enter 120 (10 × 12).
Review Future Value
See the future value of your annuity - the total amount your payments will be worth in the future with compound interest. This shows how much you'll have after all payments.
Formula
Future Value = PMT × [((1 + r)^n - 1) / r]
Where:
• PMT = Payment per period
• r = Interest rate per period
• n = Number of periods
Example Calculation:
If payment $500/month, annual rate 6% (monthly rate 0.5%), 12 months:
• Monthly rate = 6% ÷ 12 = 0.5%
• Future Value: ~$6,168
• Total payments: $6,000
• Interest earned: ~$168
About Future Value of Annuity Calculator
A future value of annuity calculator determines how much a series of regular payments will be worth in the future with compound interest. This is essential for retirement planning, savings planning, and investment strategies where you make regular contributions. The future value shows what your payments will accumulate to over time, accounting for compound interest on each payment. This calculator helps you understand how regular savings or investments grow over time.
When to Use This Calculator
- Retirement Planning: Calculate future value of regular retirement savings
- Savings Planning: See how regular savings grow over time
- Investment Planning: Plan for regular investment contributions
- Goal Setting: Set savings goals and see if you'll reach them
Understanding Future Value
- Compound Interest: Each payment earns interest, and interest compounds over time
- Regular Payments: Fixed payments made at regular intervals
- Ordinary Annuity: Payments made at end of period (most common)
- Annuity Due: Payments at beginning multiply result by (1 + r)
Why Use Our Calculator?
- ✅ Future Value: See how much your payments will be worth
- ✅ Retirement Planning: Plan for retirement savings
- ✅ Savings Goals: Set and track savings goals
- ✅ Investment Planning: Plan regular investment contributions
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
What is future value of annuity?
Future value of annuity is the total value of a series of regular payments at a future date, accounting for compound interest. For example, if you invest $500/month for 10 years at 6% annual interest, the future value shows how much you'll have at the end of 10 years. Each payment earns interest, and the interest compounds over time.
How do I convert annual interest rate to periodic rate?
Divide the annual interest rate by the number of periods per year. For monthly payments: Annual Rate ÷ 12. For quarterly: Annual Rate ÷ 4. For semi-annual: Annual Rate ÷ 2. For example, 6% annual rate = 0.5% monthly rate (6% ÷ 12 = 0.5%).
What's the difference between ordinary annuity and 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. For annuity due, the future value is higher because payments earn interest sooner. To convert ordinary annuity to annuity due, multiply by (1 + r).
How is this different from present value of annuity?
Future value shows what payments will be worth in the future (with compound interest). Present value shows what payments are worth today (discounted value). Use future value for savings planning (how much will I have?), and present value for loan analysis or determining today's value of future payments.