ToolBark
Finance

Annuity Calculator

Instantly find future value, present value, or required payment for any annuity

What do you want to calculate?



Future Value Result

Future Value$81.9Kafter 120 periods
Total Contributions$60.0K120 × $500.00
Total Interest$21.9K26.8% of FV
Present Value$45.0Klump-sum today

FV Breakdown — Contributions vs. Interest

Contributions $60.0K (73.2%)Interest $21.9K (26.8%)

Formula

FV = PMT × [(1+r)ⁿ − 1] / r = $81,939.67

PMT = $500.00 | r = 0.500000% / period | n = 120 periods | Ordinary Annuity

Payment per Period$500.00
Annual Rate6%
Periodic Rate0.500000%
Payment FrequencyMonthly (12×/yr)
Number of Periods120 (≈ 10.0 years)
Annuity TypeOrdinary (end of period)
Future Value$81,939.67
Present Value$45,036.73
Total Contributions$60,000.00
Total Interest Earned$21,939.67

Period-by-Period Growth

See the balance grow each period — payment contributed, interest earned, and running total.

Note: Results assume a fixed periodic rate and equal payments throughout. Annuity due calculations assume each payment is made at the very beginning of each period. For financial planning, tax treatment, and insurance products, consult a qualified financial advisor.

About

An annuity calculator helps you determine the future value or present value of a series of equal, periodic payments — or find exactly how much you need to save each period to hit a target. Whether you're planning retirement contributions, evaluating a pension stream, or pricing a loan, this free annuity calculator handles ordinary annuities and annuity due with any payment frequency and interest rate.

FAQ
What is the difference between an ordinary annuity and an annuity due?+

An ordinary annuity makes payments at the end of each period (most loans and bonds work this way). An annuity due makes payments at the beginning of each period. Because annuity-due payments sit in the account one extra period, they earn slightly more interest, producing a higher future value for the same payment amount and rate.

How is the future value of an annuity calculated?+

The formula is FV = PMT × [(1 + r)^n − 1] / r, where PMT is the payment per period, r is the periodic interest rate (annual rate ÷ periods per year), and n is the total number of periods. For an annuity due, multiply the result by (1 + r) to account for the extra compounding period on each payment.

What does present value of an annuity mean?+

Present value tells you what a stream of future payments is worth in today's dollars, discounted at your chosen interest rate. It answers questions like 'how much is a 20-year pension of $2,000/month worth right now?' — useful for comparing lump-sum buyouts against structured payment offers.

Can I use this to find the payment needed to reach a savings goal?+

Yes. Switch the calculator to 'Required Payment' mode and enter your target future value. The tool solves the annuity formula in reverse to tell you exactly how much to save each period — whether monthly, quarterly, or annually — to accumulate that amount at your chosen rate.

Related tools