Annuity Calculator
Enter a regular payment, an interest rate and a time period. Paying $500 a month at 5 percent for 20 years grows to $205,516.83.
How the annuity calculator works
An annuity is a series of equal payments made at regular intervals. This calculator handles the two common questions. The future value is what the payments will be worth at the end, with interest. The present value is the single amount today that is equivalent to all the payments, discounted at the same rate.
Choose ordinary timing if payments are made at the end of each period, as with most loans and many savings plans, or annuity due if they are made at the start, as with rent or insurance premiums. An annuity due is worth slightly more because each payment earns one extra period of interest.
The formulas
Here i is the rate per period and N is the number of payments. Example: Paying $500 at the end of each month for 20 years at 5 percent gives a future value of $205,516.83 and a present value of $75,762.66. You pay in $120,000.00 in total, so $85,516.83 is interest, across 240. The figures are illustrations.
What it does not cover
This is a fixed-rate math tool for a stream of equal payments. It does not model insurance company annuity contracts, which have fees, surrender charges, payout options and taxes. The SEC investor education site explains how annuity products work and what to ask before buying. For lump-sum growth see our compound interest calculator, and for a savings plan to a goal see the 401(k) savings calculator. Returns are not guaranteed.
Free pricing tips for your business
Get short, practical tips on pricing jobs and using our free calculators. No spam, unsubscribe any time.
Frequently asked questions
What is the difference between future value and present value?
Future value is what the payments are worth at the end of the term. Present value is what the whole series is worth today at the same rate. For the default inputs they are $205,516.83 and $75,762.66.
What is an annuity due?
An annuity due makes each payment at the start of the period instead of the end. Each payment earns one more period of interest, so the value is higher by a factor of (1 + i).
Is this the same as an insurance annuity?
No. It calculates the math of equal payments at a fixed rate. Insurance annuity contracts have fees and terms that this tool does not model.
Does it include taxes?
No. Taxes depend on the account type and your situation.
What if the rate is zero?
The calculator handles it: the value is simply the payment multiplied by the number of payments.
Need a custom calculator or spreadsheet built for your business?
Talk to usMore free tools: All free calculators · Compound interest calculator · 401(k) savings calculator · CD calculator