Annuity Calculator
Calculate present value, future value, payment amounts, term length, or interest rates for any annuity
Calculate Annuity Values
Years
Months
For growing annuities where payments increase each period
Future Value Results
Annuity Type: Ordinary Annuity (End of Period)
Payment Frequency: Monthly | Compounding: Monthly
Total Periods: 120 | Final Balance: $155,282.28
Yearly Balance Progression
| Year | Starting | Payments | Interest | Ending |
|---|---|---|---|---|
| 1 | $0.00 | $12,000.00 | $278.86 | $12,278.86 |
| 2 | $12,278.86 | $12,000.00 | $907.07 | $25,185.92 |
| 3 | $25,185.92 | $12,000.00 | $1,567.41 | $38,753.34 |
| 4 | $38,753.34 | $12,000.00 | $2,261.55 | $53,014.89 |
| 5 | $53,014.89 | $12,000.00 | $2,991.20 | $68,006.08 |
| 6 | $68,006.08 | $12,000.00 | $3,758.18 | $83,764.26 |
| 7 | $83,764.26 | $12,000.00 | $4,564.39 | $100,328.65 |
| 8 | $100,328.65 | $12,000.00 | $5,411.86 | $117,740.51 |
| 9 | $117,740.51 | $12,000.00 | $6,302.68 | $136,043.20 |
| 10 | $136,043.20 | $12,000.00 | $7,239.08 | $155,282.28 |
Annuity Types
Ordinary Annuity
Payments at end of period
Most common type
Annuity Due
Payments at beginning of period
Higher present/future value
Growing Annuity
Payments increase over time
Inflation protection
Annuity Tips
Start early to maximize compound interest
Consider tax implications for retirement accounts
Higher payment frequency can improve returns
Use growing annuities for inflation protection
Understanding Annuities
What is an Annuity?
An annuity is a financial product that involves a series of payments made at equal intervals. Annuities can be used for both accumulating wealth (through regular deposits) and generating income (through regular withdrawals).
Types of Annuities
- •Ordinary Annuity: Payments made at the end of each period
- •Annuity Due: Payments made at the beginning of each period
- •Fixed Annuity: Payments remain constant throughout the term
- •Growing Annuity: Payments increase at a fixed rate each period
Key Formulas
Future Value of Ordinary Annuity:
FV = PMT × [((1 + r)^n - 1) / r]
Present Value of Ordinary Annuity:
PV = PMT × [(1 - (1 + r)^-n) / r]
Growing Annuity Future Value:
FV = PMT × [((1 + r)^n - (1 + g)^n) / (r - g)]
Where:
- • PMT = Payment amount
- • r = Interest rate per period
- • n = Number of periods
- • g = Growth rate per period
Common Annuity Applications
Retirement Planning
Calculate how much you need to save regularly to reach your retirement goals
Education Savings
Plan regular contributions to education savings accounts like 529 plans
Loan Payments
Calculate monthly payments for mortgages, car loans, and other installment loans
Investment Analysis
Evaluate periodic investment strategies and compare different scenarios
Insurance Payouts
Calculate structured settlement payments and life insurance benefits
Business Planning
Plan equipment leases and regular business investments