Annuity Calculator

Calculate annuity future value, present value, or required payments. Compare ordinary annuity vs annuity due for retirement and investment planning.

Annuity Values

Future Value

$18,393

Present Value

$5,735

Today's equivalent

Total Payments$10,000
Total Interest$8,393
Annuity TypeOrdinary

Calculation Mode

Payment Details

10010,000

Rate & Period

%
015
periods
150

Annuity Growth Over Time

Value Breakdown

Total Payments

$10,000

Principal contributed

Total Interest

$8,393

Interest earned

Future Value$18,393

Annuity Formulas

Future Value (Ordinary Annuity):

FV = PMT × [((1 + r)^n - 1) / r]

Present Value (Ordinary Annuity):

PV = PMT × [(1 - (1 + r)^-n) / r]

Annuity Due Adjustment:

Multiply result by (1 + r)

Ordinary vs Annuity Due Comparison

TypeFuture ValuePresent ValueDifference
Ordinary Annuity$18,393$5,735-
Annuity Due$19,496$6,079+$1,103

Quick Answer

An annuity calculator helps determine periodic payments from a lump sum investment or the lump sum needed to generate desired payments. Use our free calculator at practicalwebtools.com to calculate present value, future value, and payment amounts for any annuity.

Key Facts

  • Annuities provide guaranteed income streams for retirement
  • Present value annuity formula: PV = PMT × [(1-(1+r)^-n)/r]
  • Future value annuity formula: FV = PMT × [((1+r)^n-1)/r]
  • Immediate annuities start payments right away
  • Deferred annuities accumulate value before payments begin
  • Fixed annuities offer guaranteed rates; variable annuities fluctuate with market

Frequently Asked Questions

An annuity is a series of equal payments made at regular intervals over a specified period. Annuities can be used for savings (accumulation phase) or for receiving regular income (distribution phase). Common examples include retirement payments and loan payments.
In an ordinary annuity, payments are made at the END of each period (like loan payments). In an annuity due, payments are made at the BEGINNING of each period (like rent). Annuity due has a higher future value because payments earn interest for one extra period.
Future value (FV) is the total value of all annuity payments plus accumulated interest at a future date. It shows how much your regular savings will grow to. FV = PMT × [((1+r)^n - 1) / r] for ordinary annuity.
Present value (PV) is today's value of a series of future payments, discounted at a given interest rate. It answers: "How much money today equals this stream of future payments?" PV = PMT × [(1 - (1+r)^-n) / r].
During accumulation, you make regular contributions that grow tax-deferred. During distribution (retirement), the annuity pays you regular income. Fixed annuities guarantee payments; variable annuities fluctuate based on investments. Consider fees and surrender charges.