Annuity Calculator
Calculate the present or future value of a stream of regular payments. Free annuity calculator supporting ordinary annuities and annuities due.
About the Annuity Calculator
An annuity is a series of equal payments made at regular intervals — a pension payout, a lease, a loan repayment or a recurring investment. This free annuity calculator finds either the present value (what the whole stream is worth today) or the future value (what it grows to), using the standard time-value-of-money formulas.
For an ordinary annuity, payments come at the end of each period; for an annuity due, they come at the beginning, which is worth slightly more because each payment has an extra period to grow or discount. The present value formula is PV = PMT × [1 − (1 + r)⁻ⁿ] ÷ r and the future value is FV = PMT × [(1 + r)ⁿ − 1] ÷ r, with a (1 + r) adjustment for annuities due.
Retirees valuing a pension, investors planning recurring contributions and anyone comparing a lump sum against instalments use this daily. All calculations happen in your browser.
How to Use the Annuity Calculator
- 1Enter the regular payment amount and the periodic interest rate.
- 2Enter the number of periods (payments).
- 3Choose whether you want present value or future value.
- 4Select ordinary annuity or annuity due and read the result.
Frequently Asked Questions
How do I calculate the future value of an annuity?
Use FV = PMT × [(1 + r)ⁿ − 1] ÷ r. Saving 10,000 per month at 1% monthly for 24 months gives 10,000 × [(1.01)²⁴ − 1] ÷ 0.01 = 269,735. The calculator applies this instantly and adjusts for annuities due.
What is the difference between an ordinary annuity and an annuity due?
In an ordinary annuity payments occur at the end of each period; in an annuity due they occur at the start. Because each payment sits invested one extra period, an annuity due is worth (1 + r) times more. Rent is typically an annuity due, loan repayments an ordinary annuity.
How do I find the present value of a pension?
Enter the regular payout as the payment, your assumed rate, and the number of payouts. PV = PMT × [1 − (1 + r)⁻ⁿ] ÷ r tells you the lump sum equivalent today — useful when deciding between a pension and a one-time settlement.
What rate should I use per period?
Match the rate to the payment frequency. For monthly payments, divide the annual rate by 12: 12% per year becomes 1% per month. Using an annual rate with monthly payments overstates the result dramatically.