Future Value Of Annuity Calculator
Calculate the future value of a series of equal payments (annuity) with compound interest. Useful for retirement planning, savings goals, and investment analysis.
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isCalculator Editorial Team
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How to use this tool?
How to Use the Future Value of Annuity Calculator
This calculator computes the future value of a series of equal payments (an annuity) given a fixed interest rate and number of periods. Follow these steps:
- Enter Payment Amount (PMT): Input the amount of each equal payment (e.g., 1000). Must be a positive number.
- Enter Interest Rate per Period: Input the interest rate as a percentage (e.g., 5 for 5%). Use the rate per compounding period (e.g., monthly rate if payments are monthly). Must be 0 or greater.
- Enter Number of Periods (n): Input the total number of payment periods (e.g., 10). Must be a positive integer.
- Select Annuity Type: Choose either:
- Ordinary (end of period) – payments occur at the end of each period.
- Due (beginning of period) – payments occur at the beginning of each period.
- Click "Calculate Future Value": The result will display the future value, the formula used, and a step-by-step breakdown.
Note: All inputs must be valid numbers. If the interest rate is 0%, the future value is simply PMT × n. The result is formatted to two decimal places.
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Frequently Asked Questions
An ordinary annuity makes payments at the end of each period, while an annuity due makes payments at the beginning. Annuity due has a higher future value because each payment earns interest for one extra period.
Yes, but ensure the interest rate per period matches the payment frequency. For monthly payments, use the monthly interest rate (annual rate divided by 12) and number of months.
If the interest rate is 0%, the future value is simply the payment amount multiplied by the number of periods. The calculator handles this case.
