Annuity Calculator
Adjust the inputs below. Results update as you type.
How it works
An ordinary annuity pays at the end of each period; an annuity due pays at the start. Future value = PMT × [(1+r)^n − 1] / r, where r is the periodic rate and n is the number of periods. Present value discounts those cash flows back to today. Use this for structured settlements, lottery payouts, and savings plans.
Input guidance
- Use realistic rates from lender or provider quotes instead of headline averages.
- Model conservative, baseline, and optimistic scenarios before deciding.
- Include recurring real-world costs (fees, taxes, insurance, maintenance) where relevant.
The formula
The future value of an annuity with regular payments is FV = PMT·(((1+r)^n − 1)/r); its present value is PV = PMT·((1 − (1+r)^−n)/r), where r is the periodic rate and n the number of payments.
Worked example
Depositing $500 a month into an annuity earning 5% for 20 years accumulates about $205,000, of which $120,000 is your deposits and the rest is growth.
More examples to test
- Conservative case: use a higher interest rate and lower growth assumptions to stress-test affordability.
- Optimistic case: use a lower rate with stable income assumptions to compare upside potential.
How to interpret results
Treat this as a planning model, not a final approval tool. Compare at least two scenarios and focus on total-cost and cash-flow trade-offs.
When this can be inaccurate
Results can diverge due to fees, changing rates, tax rules, lender policies, and behavior changes that simplified models cannot fully capture.
Change history
- July 2026: Quality-reviewed for publication with formula checks and explanatory copy updates.
Site-wide corrections also appear on the corrections log.
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Frequently asked questions
What is an annuity?+
A financial product or stream of equal payments. In savings terms it is regular deposits growing at a rate; as a product it can convert a lump sum into guaranteed income.
Ordinary annuity vs. annuity due?+
An ordinary annuity pays at the end of each period; an annuity due pays at the beginning, which earns slightly more interest over time.
Are annuity products worth it?+
They trade growth potential for guaranteed income and can suit retirees wanting stability, but fees and terms vary widely — read the contract carefully.
How should I use this result?+
Treat it as a planning estimate. Compare at least two realistic scenarios, then confirm with statements, quotes, or a qualified professional before acting.
How often should I refresh assumptions?+
Refresh whenever rates, income, costs, or policy limits change materially, and before making irreversible commitments.