Annuity Calculator
Calculate present value and future value of regular payment streams.
Annuity Details
This calculator models an ordinary annuity — payments made at the end of each period. Annuity due (payments at the beginning of each period) is not supported.
Annuity Values
About This Calculator
The Annuity Calculator helps you understand the value of a series of regular payments over time. It calculates both the present value (what those payments are worth today) and the future value (what they'll be worth at the end of the period).
Annuities are useful for retirement planning, evaluating investment opportunities, and understanding the time value of money. This calculator assumes ordinary annuities where payments are made at the end of each period.
Formula & Calculation Method
Annuity Formulas:
Present Value (PV) = PMT × [(1 - (1 + r)^-n) / r]
Future Value (FV) = PMT × [((1 + r)^n - 1) / r]
Where:
PMT = Payment amount per period
r = Interest rate per period as a decimal (annual rate ÷ 100)
n = Number of periods (years)
This calculator uses annual periods: the annual rate you enter is applied once per period, and each period is one year. There is no compounding-frequency control, so to model monthly compounding you would first convert the rate and period count yourself (e.g. divide the annual rate by 12 and multiply the years by 12) before entering them.
Example: $1,000 annual payment at 5% annual rate for 20 years:
r = 5% / 100 = 0.05
n = 20 years
PV ≈ $12,462.21 | FV ≈ $33,065.95
How to Use This Calculator
- Enter Payment Amount: Input the regular payment amount (monthly, annually, etc.).
- Enter Interest Rate: Input the annual interest rate as a percentage.
- Enter Number of Periods: Input the total number of payment periods (e.g., years × 12 for monthly payments).
- View Results: See present value (what payments are worth today) and future value (what they'll be worth later).
- Adjust Values: Experiment with different scenarios to plan your financial future.
Frequently Asked Questions
What is an annuity?
An annuity is a series of equal payments made at regular intervals over a specified period. Common examples include retirement savings plans, mortgage payments, and investment portfolios that pay regular dividends.
What is the difference between present value and future value?
Present value is what a series of future payments is worth today. Future value is what those payments will be worth at the end of the payment period, accounting for interest earned.
What is an ordinary annuity vs. annuity due?
An ordinary annuity has payments at the end of each period. An annuity due has payments at the beginning. This calculator assumes ordinary annuities. Annuity due calculations would be slightly different.
How do I use this for retirement planning?
Enter your planned monthly retirement savings, expected annual return rate, and years until retirement. The future value shows how much you'll have saved, helping you plan your retirement goals.
Expert Reviewed
This calculator was reviewed by NumCalculators Editorial Team, Multi-disciplinary Expert Team