Annuity Calculator
Calculate the present or future value of an annuity, or the payment amount, given the other variables.
Published by:
isCalculator Editorial Team
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How to use this tool?
This calculator computes the present value (PV), future value (FV), or payment amount (PMT) for an ordinary annuity or an annuity due.
- Enter Payment per Period ($) – The fixed amount paid each period (e.g., 1000).
- Enter Interest Rate per Period (%) – The periodic interest rate (e.g., 5 for 5%).
- Enter Number of Periods – Total number of payment periods (must be a positive integer, e.g., 10).
- Select Annuity Type – Choose Ordinary (payments at end of period) or Annuity Due (payments at beginning).
- Select Calculation – Choose what to compute:
- Present Value – Value of all future payments today.
- Future Value – Value of all payments at the end of the term.
- Payment Amount – The periodic payment needed to reach a given present value (enter the target PV in the Payment field).
- Click Calculate – The result appears below with the formula used.
Note: All monetary values are in dollars ($). The interest rate must be entered as a percentage (e.g., 5 for 5%). For zero interest, the calculator handles it correctly.
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Frequently Asked Questions
An annuity is a series of equal payments made at regular intervals. Examples include mortgage payments, retirement income, and lease payments.
In an ordinary annuity, payments are made at the end of each period. In an annuity due, payments are made at the beginning of each period.
The present value is calculated by discounting each future payment back to the present using the interest rate. For an ordinary annuity, the formula is PMT * (1 - (1 + r)^-n) / r.
