How to use the Annuity Calculator
The annuity calculator values a stream of equal payments: what it is worth today and what it will grow to.
What you need to enter
- Payment per period ($)
- Interest rate (% / year)
- Years
- Payments made
The formula
Present value = payment × (1 − (1 + r)^−n) ÷ r. Future value = payment × ((1 + r)^n − 1) ÷ r. Payments at the start of the period are multiplied by (1 + r).
Worked example
Using the default values in the calculator:
- Payment per period ($): 1000
- Interest rate (% / year): 5
- Years: 20
- Payments made: End of each month
| Present value | $151,525.31 |
| Future value | $411,033.67 |
| Total payments | $240,000.00 |
Tips for better results
- Use a realistic discount rate.
- Check whether payments are made at the start or end of each period.
Common mistakes to avoid
- Mixing up annuity due and ordinary annuity.
- Ignoring inflation in long streams.
Please note: Calculators and guides give general estimates, not financial, tax or investment advice. Real offers depend on your lender, location and personal situation. See our Disclaimer.