Calculate the future value of an annuity by entering your payment amount, interest rate, number of periods, and compounding frequency. Choose between an ordinary annuity (payments at end of period) or annuity due (payments at start) to see your future value, total contributions, and total interest earned.
Future Value of Annuity
--
Total Contributions
--
Total Interest Earned
--
Starting Principal
--
An annuity is a series of equal, periodic payments made over a set period of time. Annuities are commonly used in retirement planning, savings strategies, and loan repayment structures. The key conditions are that payments are equal in amount and made at fixed intervals.
The future value of an annuity is the total value of a series of recurring payments at a specific date in the future, accounting for compound interest. It tells you how much your regular contributions will be worth after a given time horizon.
An ordinary annuity (annuity immediate) makes payments at the end of each period, while an annuity due makes payments at the beginning of each period. Because annuity due payments are invested one period sooner, they accumulate slightly more interest and produce a higher future value.
For an ordinary annuity, the formula is FV = PMT × [(1 + i)^n − 1] / i, where i is the interest rate per period and n is the total number of payments. For an annuity due, the result is multiplied by (1 + i) to account for the earlier payment timing.
More frequent compounding (e.g., monthly vs. annually) results in a higher future value because interest is calculated and reinvested more often. Even at the same nominal rate, daily or monthly compounding will yield more than annual compounding over the same term.
Annuities can be a reliable tool for building predictable wealth, especially for retirement savings. Their suitability depends on the interest rate, fees, inflation, and your financial goals. They provide certainty of accumulation but may offer less flexibility than other investment vehicles.
The required monthly payment depends on your interest rate and time horizon. For example, at a 7% annual rate compounded monthly over 30 years, you would need to contribute approximately $1,000 per month to reach around $1.2 million. Use this calculator to try different combinations.
Future value tells you how much a series of payments will be worth at a future date, assuming reinvestment at a given rate. Present value does the opposite — it tells you what a series of future payments is worth in today's dollars, discounted at a given rate.