Our free Annuity Calculator helps you see the future value of a series of regular, equal payments. It's an essential tool for retirement planning, savings goals, or understanding any investment where you contribute consistently over time.
Calculate the future value of your payments.
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An **Annuity Calculator** is a tool used to determine the future value (FV) of an annuity. An annuity isn't necessarily a complex insurance product; in financial terms, it's simply a series of fixed, equal payments made over a set period. This calculator shows you how much those regular contributions will grow, thanks to the power of compound interest.
This tool calculates the future value of an **ordinary annuity**, where payments are made at the *end* of each period (like a typical 401(k) contribution from your paycheck). It helps you visualize your savings growth and plan for long-term financial goals.
To find out how much your savings will be worth, our calculator uses the standard formula for the future value of an ordinary annuity:
FV = P × [ ((1 + r)n - 1) / r ]
Let's say you want to save money by making annual payments for 10 years.
Calculation:
P = $1,200
r = 6% / 1 = 0.06
n = 10 years × 1 = 10 total payments
FV = 1,200 × [ ((1 + 0.06)10 - 1) / 0.06 ]
FV = 1,200 × [ (1.790847 - 1) / 0.06 ]
FV = 1,200 × [ 0.790847 / 0.06 ]
FV = 1,200 × 13.18079
FV = $15,816.95
In this case, you would have contributed a total of $12,000 ($1,200 x 10). The remaining $3,816.95 is the total interest you earned from compounding.
This tool is more flexible than its name might suggest. You can use this annuity payment calculator for many financial planning scenarios:
This calculator is designed for an **ordinary annuity**, which is the most common structure. However, it's helpful to know the difference:
An annuity is a series of equal payments made at regular intervals. A lump sum is a single, one-time payment. This calculator shows how a series of annuity payments can grow into a large lump sum in the future.
An ordinary annuity (or annuity-in-arrears) is one where payments are made at the *end* of each period. This is the most common type and is what our calculator uses. The alternative, an 'annuity-due', has payments at the *beginning* of the period.
No, this calculator projects pre-tax growth. The tax treatment of an annuity or investment account (like a 401k or IRA) depends on the specific account type and your personal financial situation. The total interest shown here is a pre-tax figure.
The Future Value (FV) of an annuity, which this calculator finds, is what your series of payments will be worth in the future. The Present Value (PV) is the opposite: it's what a series of *future* payments is worth *today*. PV is often used for loan calculations or for figuring out how much a lottery-winning payout is worth right now.
Understanding how your regular savings grow is the key to effective financial planning. After using the annuity calculator, try our Compound Interest Calculator to see how a single lump sum can grow, or our Retirement Calculator for a more detailed look at your nest egg.