📊 Annuity Calculator
📊 Annuity Results
📅 Amortization Schedule
Enter your details and click "Calculate" to see the amortization schedule
🧮 Understanding Annuities
An annuity is a financial product that provides a stream of payments over time, typically used for retirement planning. Understanding how annuities work and calculating their value is essential for making informed financial decisions.
Future Value of Ordinary Annuity: Where P is payment, r is rate per period, and n is number of periods.
Present Value of Ordinary Annuity: Calculates the current value of future payments.
Payments at end of each period
Mortgage, car loans, bond interest
Payments at beginning of each period
Rent, insurance premiums, leases
Factors That Affect Annuity Values:
- Interest Rate: Higher rates increase future values, decrease present values
- Payment Frequency: More frequent payments increase effective returns
- Time Horizon: Longer periods dramatically increase future values
- Annuity Type: Annuity Due has higher values than Ordinary Annuity
Annuities are long-term financial instruments. Carefully consider your financial goals, risk tolerance, and time horizon before making annuity decisions.
🧭 How to Use This Calculator
- Select your preferred currency from the dropdown at the top of the calculator.
- Choose the annuity type: Ordinary Annuity (payments at the end of each period) or Annuity Due (payments at the start of each period).
- Enter the payment per period, the number of periods, and the annual interest rate.
- Select the compounding frequency — Monthly, Quarterly, Semi-Annual, or Annual.
- Optionally enter a present value (PV) if you're starting with a lump sum, and a target future value if you want to know the payment needed to reach a goal.
- Click Calculate to see the future value, present value, total payments, total interest, required payment for your target, and effective annual rate.
- Scroll down to review the Amortization Schedule — toggle between "By Period" to see every payment period and "By Year" to see totals grouped by year.
- Click Reset at any time to clear all fields and start a new calculation.
❓ Frequently Asked Questions
What's the difference between an Ordinary Annuity and an Annuity Due?
In an Ordinary Annuity, payments happen at the end of each period — common for mortgages, car loans, and bond interest. In an Annuity Due, payments happen at the start of each period — common for rent, insurance premiums, and leases. Because Annuity Due payments start earning interest sooner, its future and present values are slightly higher than an equivalent Ordinary Annuity.
What does "Future Value of Annuity" mean?
Future Value is the total worth of all your periodic payments plus accumulated interest by the end of the annuity term. It shows how much your regular contributions will grow to, assuming the entered interest rate holds steady.
What does "Present Value of Annuity" mean?
Present Value tells you what a series of future payments is worth in today's money. It's useful for comparing a stream of payments (like a pension or structured settlement) against a lump sum offer.
Why does the Effective Annual Rate differ from the interest rate I entered?
The Effective Annual Rate (EAR) accounts for compounding within the year. If interest compounds more often than annually — monthly or quarterly, for example — the actual annual return you earn is slightly higher than the stated nominal rate, and the EAR reflects that true return.
How is the "Required Payment for Target FV" calculated?
If you enter a target future value, the calculator works backward from your interest rate, number of periods, and annuity type to determine exactly how much you'd need to contribute each period to reach that goal by the end of the term.