Annuity Calculator
Find the future value, present value or required payment of a series of equal payments.
What this tool does
The future value of an ordinary annuity is payment × ((1 + i)ⁿ − 1) ÷ i, where i is the rate per period and n the number of payments. Paying 500 a month at 6% a year for 10 years grows to about 81,940. Enter your own payment, rate and term above, or switch the mode to solve for the payment.
Applies the annuity formulas for regular, equal payments at a fixed interest rate.
Finds the future value, the present value or the payment needed to reach a target amount.
How to use it
- Choose what you want to find.
- Enter the payment (or the target), the annual rate and the number of years.
- Choose the payment frequency and whether payments are at the end or start of each period.
- Read the result, the total paid in and the interest earned.
Why use this calculator
Does the three annuity questions in one tool: the future value of regular payments, their present value, and the payment you need to reach a target. Regular saving, pension payments, loan repayments and structured settlements are all annuities. The formula is easy to get wrong by hand, particularly when the payment frequency differs from the compounding or the payment falls at the start of the period.
Why we built it
We built the annuity calculator to answer the three common annuity questions in one place, for payments at the end or the start of each period. Compare with the future value calculator and plan with the savings goal calculator.
Who this tool is for
- Savers working out what regular deposits become
- People comparing a lump sum with payments
- Students of finance and mathematics
When to use it
- Seeing what regular monthly savings will grow to.
- Working out the lump-sum value of a stream of payments.
- Deciding how much to save each month to reach a goal.
- Comparing a lump sum with an annuity offer.
How it works
With rate i per period and n payments of size P: future value = P × ((1 + i)ⁿ − 1) ÷ i; present value = P × (1 − (1 + i)⁻ⁿ) ÷ i. For an annuity due, where each payment is at the start of its period, multiply either result by (1 + i). To find the payment for a goal, divide the goal by the future-value factor. If the rate is zero, the factor is simply n.
Example: 500 a month for 10 years at 6% a year (0.5% a month, 120 payments). The factor is 163.879, so the future value is 81,939.67, of which 60,000 is paid in and 21,939.67 is interest. As an annuity due it is 82,349.37.
Assumes a fixed rate and equal payments. Real returns vary, and fees, inflation and tax are not included.
A worked example
These are the values the calculator opens with, so you can see exactly what it does with them. Change any value on the page and the result updates; the figures below come from the same calculation.
| Input | Value |
|---|---|
| What do you want to find? | Future value of regular payments |
| Payment each period | 500 |
| Target future value | 100000 |
| Annual interest rate | 6 |
| Years | 10 |
| Payments per year | Monthly |
| Payments are made | At the end of each period (ordinary annuity) |
| Currency symbol | $ (dollar) |
With those inputs, the calculator returns:
- Future value: $81,939.67
- Number of payments: 120
- Total you pay in: $60,000.00
- Interest earned: $21,939.67
- Growth multiple: 1.366×
What you give it, and what you get back
| Item | Details |
|---|---|
| What to find | Future value, present value or payment needed. |
| Payment or goal | The regular payment, or the target future value. |
| Rate, years, frequency, timing | Annual rate, term, payments per year, and end or start of period. |
| Output | The result, the number of payments, the total paid in and the interest or discount. |
Issues you may run into
| What you see | Why it happens | What to do |
|---|---|---|
| The result seems too high | The rate may be the annual rate applied to a monthly frequency. | Enter the annual rate; the tool divides it by the payments per year. |
| I get a different answer from my bank | Banks may compound at a different frequency or charge fees. | Match the payment frequency and check any fees. |
| Payment needed looks small | A long term and a rate do most of the work. | Check the years and rate are realistic. |
Assumptions and limitations
- Fixed rate and equal payments only.
- Compounding matches the payment frequency.
Frequently asked questions
What is an annuity?
A series of equal payments made at regular intervals, such as monthly savings, a pension or a loan repayment.
What is the difference between an ordinary annuity and an annuity due?
An ordinary annuity pays at the end of each period; an annuity due pays at the start, so it earns one more period of interest.
How do I calculate the future value of an annuity?
Multiply the payment by ((1 + i)ⁿ − 1) ÷ i, where i is the rate per period and n the number of payments.
What is the present value of an annuity?
The lump sum today that is equal to all the future payments, discounted at the given rate.
How much do I need to save each month to reach a goal?
Choose "Payment needed to reach a goal", then enter the target, the rate and the years.
Is my information sent anywhere?
No. The calculation runs in your browser and nothing leaves the page.