FINANCIAL · ANNUITY

Annuity Calculator

Calculate the present value, future value, or payment for an ordinary annuity or annuity-due. Supports monthly, quarterly, semi-annual, and annual frequencies.

Annuity Inputs

Regular payment amount

02 Result
Future value
$81,939.67
Present value$45,036.73
Future value$81,939.67
Periodic payment$500.00
Total payments (120×)$60,000.00
Total interest$21,939.67
Payments per year12

About This Calculator

An annuity is a series of equal payments made at regular intervals. Use this calculator to solve for present value (PV), future value (FV), or the periodic payment (PMT) given the other variables. Supports ordinary annuities (payment at end of period) and annuities-due (payment at beginning of period), with monthly, quarterly, semi-annual, or annual payment frequencies.

How It Works

Select whether to solve for PV, FV, or PMT, then enter the known value, annual interest rate, number of years, payment frequency, and annuity type. The calculator applies the time-value-of-money (TVM) formula for the selected mode and returns the unknown value along with total payments and total interest.

The Formula

PV = PMT × [1 − (1+r)^−n] / r

PMT
periodic payment amount
r
periodic interest rate (annual rate ÷ periods per year)
n
total number of periods (years × periods per year)
PV
present value (lump sum today equivalent)
FV
future value (accumulated balance at end of n periods)

Frequently Asked Questions

What is the difference between an ordinary annuity and an annuity-due?
An ordinary annuity makes payments at the end of each period (e.g. most loans and bonds). An annuity-due makes payments at the beginning of each period (e.g. many leases and insurance premiums). Annuity-due values are always higher than ordinary annuity values by a factor of (1+r) because each payment earns one extra period of interest.
What does present value of an annuity mean?
The present value (PV) is the lump sum you would need today — invested at the given rate — to fund all future payments. It answers the question "how much is this stream of payments worth right now?" Pension valuation, lottery payouts, and lease pricing all use this concept.
How is annuity future value different from compound interest future value?
Compound interest computes the growth of a single lump sum. Annuity future value sums the growth of each periodic payment independently. Each payment earns compound interest for the remaining life of the annuity, so the total is the sum of a geometric series.
Can I use this calculator for a mortgage or car loan?
Loans are structurally equivalent to present-value annuities — you receive the PV (loan amount) today in exchange for making PMT payments over n periods. Select "Solve for PMT" and enter the loan amount as the Present Value to find your monthly payment.