Annuity Calculator
An annuity is a series of equal payments made at regular intervals — a yearly contribution to a retirement fund, a fixed pension payout, or a structured savings plan. This calculator finds both the future value (what the stream grows to) and the present value (what it is worth today) for any payment, rate, term, and timing, in any currency.
- Contributions
- Growth
- Total contributions
- $20,000.00
- Present value
- $11,469.92
- Future value
- $36,785.59
Paying 1,000 at the end of each year for 20 years at 6% grows to 36,786. You contribute 20,000 of your own money; the remaining 16,786 is compound growth — 84% on top of what you put in.
How it works
Each payment in an annuity is made at a different point in time, so each one compounds for a different number of periods. The earliest payment has the longest to grow; the last one barely grows at all. The future-value formula sums all of those individually compounded payments into a single figure — what the whole stream is worth at the end of the term.
Present value works in the opposite direction. It discounts every future payment back to today using the same rate, answering the question: what lump sum right now is equivalent to receiving this stream? That is the figure you use to price a pension, compare a buyout offer against keeping the payments, or decide what an income stream is fairly worth.
Timing matters. With an ordinary annuity, payments land at the end of each period; with an annuity-due, they land at the start, giving every payment one extra period to compound. That single shift raises both the future and present value by a factor of (1 + i). The calculator lets you toggle between the two and breaks the result into your own contributions versus the compound growth on top, so you can see exactly how much of the final balance is money you saved and how much the interest did for you. Switch the currency at the top to view every figure in your units.
Future value (ordinary annuity) = PMT · [((1 + i)^n − 1) ÷ i]. Present value = PMT · [(1 − (1 + i)^(−n)) ÷ i]. For an annuity-due (payments at period start), multiply each by (1 + i). PMT = payment, i = periodic rate, n = number of periods.
Worked example
You contribute 1,000 at the end of each year for 20 years, earning 6% annually. Future value = 1,000 · [((1.06)^20 − 1) ÷ 0.06] ≈ 36,786. You personally contributed 20,000, so the remaining ≈ 16,786 is compound growth — about 84% on top of what you put in. The present value of that same stream is 1,000 · [(1 − 1.06^(−20)) ÷ 0.06] ≈ 11,470, meaning the whole 20-year stream is worth roughly 11,470 in today’s money.
Things to watch out for
At a 0% rate the math collapses to simple addition: future value and present value both equal payment × years, with no growth. Choosing "start of period" (annuity-due) lifts every result by one extra period of compounding — meaningful over long terms. This calculator assumes a fixed payment and a fixed rate; real annuities may have escalating payments, fees, or variable rates that change the outcome. Inflation is not modeled, so a present value here is in nominal terms — discount further if you need real purchasing power. For a single lump sum rather than a stream, use a compound interest calculator instead.
Frequently asked questions
What is the difference between an ordinary annuity and an annuity-due?+
In an ordinary annuity, payments are made at the end of each period; in an annuity-due, they are made at the start. Because every payment in an annuity-due compounds for one extra period, both its future and present value are higher by a factor of (1 + the periodic rate).
What is the difference between future value and present value?+
Future value is what the stream of payments grows to by the end of the term. Present value is what that same stream is worth in today’s money, discounted back at the same rate. Use present value to price or compare an income stream now.
How much of the future value is my own money?+
The calculator splits the result into total contributions (what you paid in) and growth (the compound interest earned). Over long terms at a healthy rate, growth can exceed your contributions.
Does this calculator account for inflation?+
No. All figures are nominal. If you need the real purchasing power of a future or present value, discount it further by your expected inflation rate.
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Disclaimer: This calculator is for educational and informational purposes only and provides estimates, not financial advice. Interest rates, taxes, fees, and local rules vary and change over time. Confirm figures with a qualified professional before making any financial decision.
Last reviewed: 2026-06-22