Annuity Calculator
Calculate present value and future value of annuities. Plan your retirement income or evaluate annuity investment options with precision.
How to Use This Annuity Calculator
- Choose Present Value (lump sum equivalent of payments) or Future Value (accumulated amount).
- Enter the regular payment amount, annual interest rate, and number of years.
- Select payment frequency (monthly, quarterly, etc.) and timing (end or beginning of period).
- Click "Calculate Annuity" to see the result.
Annuity Formulas
Where PMT = payment, r = rate per period, n = total number of periods. For annuity due, multiply by (1+r).
Examples
$500/month for 20 years at 5% annual (monthly compounding):
FV = $500 × [((1+0.05/12)^240 − 1) / (0.05/12)] = $205,516.93
Frequently Asked Questions
What is the difference between ordinary annuity and annuity due?
In an ordinary annuity, payments are made at the end of each period. In an annuity due, payments are made at the beginning. Annuity due has a higher present/future value because each payment earns interest for one additional period.
How is an annuity different from a bond?
An annuity is a series of equal payments at regular intervals (like a pension). A bond is a debt instrument where you lend money and receive periodic interest payments plus the principal at maturity. Annuities can be purchased from insurance companies.