Annuity Calculator – Estimate Payments and Future Value
Find the present or future value of an annuity of regular payments.
About the Annuity Calculator
What is the Annuity Calculator?
An annuity calculator values a stream of equal payments — either what they will grow to (future value) or what they are worth today (present value).
Why use this calculator?
Annuities appear everywhere: lease payments, pension income, structured settlements and regular savings. Valuing them correctly is a core financial skill.
How to use it
- Enter the payment amount and the interest rate.
- Enter the number of years and payments per year.
- Review the future and present values.
Formula
FV = PMT·((1+r)^n − 1)/r; PV = PMT·(1 − (1+r)^−n)/r
Assumes payments at the end of each period (an ordinary annuity).
Frequently Asked Questions
What is an ordinary versus an annuity due?
An ordinary annuity pays at the end of each period; an annuity due pays at the beginning. Paying earlier is worth more, so an annuity due has a higher value.
How is present value useful?
It tells you what a future stream of payments is worth today, so you can compare a lump sum offer against a payment plan.
What is compound interest?
Compound interest is interest earned on both your original money and on previously earned interest. Over time it can make savings grow much faster than simple interest.
What is the difference between nominal and effective return?
The nominal return ignores compounding within the year, while the effective (annualised) return accounts for it. The effective figure is usually higher and better reflects real growth.
How does inflation affect my returns?
Inflation erodes purchasing power. The real return is the nominal return minus inflation, so an investment can grow in dollars yet still lose value in what it can buy.
What rate of return should I assume?
A common long-term assumption for a diversified stock portfolio is about 6% to 8% per year after inflation, but returns vary and are never guaranteed.
Does this account for taxes and fees?
Unless stated, the tool shows pre-tax, pre-fee growth. Subtract your fund expense ratio and expected tax rate to estimate what you keep.
Is this calculator free to use?
Yes. Every calculator on this site is completely free, with no hidden fees, no subscriptions and no limits on how many times you can use it.
How accurate are the results?
We use standard, widely accepted formulas and calculate in your browser using double-precision arithmetic. Results are rounded for readability, so treat them as reliable estimates rather than a guarantee. Real-world factors can vary the true figure.
Can I add this calculator to my own website?
Yes. Open this calculator page and use the "Add to your website" box in the sidebar to copy a ready-made iframe snippet, then paste it into any HTML page.