Annuity Calculator
Calculate the future value or present value of a monthly annuity, with support for ordinary annuities and annuities due.
Independently verified for accuracy
Calculator by Toolsloft ↗- Future value
- $231,020.45
- Total payments
- $120,000.00
- Interest
- $111,020.45
This calculator finds the future or present value of a stream of equal monthly payments. Use future value to see what regular deposits grow into, or present value to see the lump sum a series of payments is worth today.
How this is calculated
It applies the standard annuity formulas with monthly compounding at the annual rate divided by twelve. An ordinary annuity pays at the end of each period; an annuity due pays at the start, which is the same result multiplied by one plus the periodic rate.
How to use
- Choose whether to find future value or present value.
- Enter the monthly payment, annual rate, and number of years.
- Pick ordinary (end of period) or due (start of period), then read the result.
Examples
- FV: $500/mo, 6%, 20 yr:
$231,020.45 - PV: $1,000/mo, 5%, 10 yr:
$94,281.35
FAQ
- What is the difference between future and present value?
- Future value is what a stream of payments grows to by the end. Present value is the single amount today that is equivalent to that future stream, discounted at the same rate.
- Ordinary annuity versus annuity due?
- An ordinary annuity pays at the end of each period, while an annuity due pays at the beginning. Because each payment has one extra period to grow or one less to discount, an annuity due is worth slightly more.
- Does this model a fixed annuity product?
- It models the time value of equal payments. A real annuity contract may add fees, surrender charges, mortality credits, or guarantees that this calculation does not include.