Annuity Calculator

Free online annuity calculator. Compute the future value, present value or periodic payment of an ordinary annuity or annuity due, with adjustable rate, term and payment frequency. Visualise growth on a chart.

Plan any stream of equal payments. An annuity is a series of equal payments made at regular intervals. Use this tool to find its future value, present value, or the payment amount needed to hit a goal - for pensions, loans, leases, savings plans and more.

Periodic Payment (PMT)
—
Result
—
Total Paid
—
Interest
—

Understanding Annuities

What Is an Annuity?

An annuity is a sequence of equal payments made at equal time intervals. Classic examples are pension payouts, insurance settlements, leases, mortgages and systematic savings plans. This calculator handles two variants:

  • Ordinary annuity (annuity-immediate): payments occur at the end of each period. Most loans and savings plans use this convention.
  • Annuity due: payments occur at the beginning of each period. Rent and insurance premiums typically work this way.

Three Things You Can Solve

  1. Future Value (FV) - given the payment, how much will the stream be worth at the end?
  2. Present Value (PV) - what is a stream of future payments worth in today's money?
  3. Payment (PMT) - what payment size hits a target FV or PV?

The Formulas

With a per-period rate r and n total periods:

  • Ordinary FV: FV = PMT x ((1 + r)^n - 1) / r
  • Ordinary PV: PV = PMT x (1 - (1 + r)^-n) / r
  • Annuity due multiplies either result by (1 + r), because every payment is shifted one period earlier.

The per-period rate is the annual rate divided by the payments-per-year, and n = years x payments-per-year.

Caveats

  • Rates are nominal assumptions, not guarantees. Markets move.
  • This tool ignores taxes, fees and inflation. Pair it with the inflation calculator for real purchasing power.
  • For a single lump sum, use the compound-interest tool instead.
  • Results are mathematical estimates for planning, not financial advice.

Open-Source License: This tool is implemented in vanilla JavaScript and bundles Chart.js (MIT) locally in accordance with its license terms.

Frequently Asked Questions

Ordinary annuity vs. annuity due - which should I pick?
Use ordinary (end-of-period) for loans, mortgages and most savings plans. Use annuity due (beginning-of-period) for rent, leases and insurance premiums where payment is upfront. The difference is a single (1 + r) factor.
Why is my present value lower than what I pay?
Because future money is worth less today. The gap is the time value of money - the interest you implicitly 'pay' to receive the stream later.
How do I model a monthly pension?
Set payments per year to 12, enter the monthly pension as PMT, the expected return as the annual rate, and the payout years as the term. Switch to 'Present Value' to see what that income stream is worth today.
Can I solve for the payment to reach a goal?
Yes - pick 'Periodic Payment', enter your target amount and whether it is a future or present value, then read the required PMT.
Does this handle inflation?
Not directly. Enter your expected return minus expected inflation as the rate to think in today's purchasing power, or use the inflation calculator alongside.
What rate should I use?
Use the periodic (per-payment) rate implied by your investment or loan. For a 6% annual rate paid monthly, the per-period rate is 0.5%.