Annuity Calculator

What this does

The annuity calculator finds the present value and future value of a level annuity — a fixed payment made every period — along with the total of all payments and the interest involved.

How to use it

1. Enter the payment made each period.
2. Enter the interest rate per period and the number of periods.
3. Choose ordinary (end of period) or due (start of period).
4. Read the present and future values.

How it works

The future value sums each payment compounded to the end of the term; the present value discounts each payment back to today. An annuity due (payments at the start of each period) is worth slightly more, by a factor of (1 + i).

FV = PMT × ((1 + i)ⁿ − 1) ÷ i; PV = PMT × (1 − (1 + i)⁻ⁿ) ÷ i

Understanding your result

The present value is the lump sum that could replace the whole payment stream today, while the future value is what the payments accumulate to by the end — useful for valuing pensions, leases, and structured payouts. An annuity due is always worth a little more than an ordinary annuity because every payment has one extra period to earn interest.

Example

Twelve monthly $100 payments at 0.5% per month are worth about $1,161.89 today and $1,233.56 at the end.