Annuity Future Value Calculator
Calculate the future value of regular payments with compound interest over time
Calculate Annuity Future Value
Regular payment amount per period
Annual nominal interest rate
Number of years for payments
Additional months (0-11)
How often payments are made
Payments at end of period
Future Value Results
Calculation Details
Total Periods: 0
Periodic Rate: 0.0000%
Payment Type: End of Period
Interest Earned: 0% of payments
Growth Analysis
Payment Frequency: monthly
Compounding: monthly
Final Period Payment: $0
Example Calculation
Retirement Savings Example
Scenario: Save $500 monthly for 30 years
Payment Amount: $500 per month
Interest Rate: 7% annually
Term: 30 years
Payment Type: Ordinary annuity (end of month)
Compounding: Monthly
Results
Total Payments: $500 × 360 = $180,000
Future Value: ≈ $612,000
Interest Earned: ≈ $432,000
Formula: FV = PMT × [((1 + r)^n - 1) / r]
Where: r = 0.07/12, n = 30×12 = 360
Annuity Types
Ordinary Annuity
Payments made at the end of each period
Common for: Mortgages, loans, retirement contributions
Annuity Due
Payments made at the beginning of each period
Common for: Rent, insurance premiums, lease payments
Growing Annuity
Payments increase by a fixed rate each period
Common for: Inflation-adjusted savings plans
Annuity Tips
Annuity due always has higher future value than ordinary annuity
More frequent compounding increases future value
Growing annuities help combat inflation
Start early to maximize compound growth
Consider tax implications for retirement accounts
Understanding Annuity Future Value
What is Future Value of Annuity?
The future value of an annuity is the total value of a series of equal payments at a specific point in the future, considering compound interest. This calculation helps determine how much your regular savings or investment contributions will be worth over time.
Key Applications
- •Retirement planning and 401(k) contributions
- •College savings plans (529 plans)
- •Regular investment portfolios
- •Sinking funds for major purchases
Mathematical Formulas
Ordinary Annuity:
FV = PMT × [((1 + r)^n - 1) / r]
Annuity Due:
FV = PMT × [((1 + r)^n - 1) / r] × (1 + r)
Growing Annuity:
FV = PMT × [((1 + r)^n - (1 + g)^n) / (r - g)]
Where:
• FV = Future Value
• PMT = Payment Amount
• r = Periodic Interest Rate
• n = Number of Periods
• g = Growth Rate (for growing annuity)