Calculate annuity future value, present value, or required payments. Compare ordinary annuity vs annuity due for retirement and investment planning.
Future Value
$18,393
Present Value
$5,735
Today's equivalent
Select what to calculate
Enter payment amounts
Set interest rate and periods
Watch your annuity grow
Payments vs interest earned
Total Payments
$10,000
Principal contributed
Total Interest
$8,393
Interest earned
Understand the calculations
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)
Compare annuity types
| Type | Future Value | Present Value | Difference |
|---|---|---|---|
| Ordinary Annuity | $18,393 | $5,735 | - |
| Annuity Due | $19,496 | $6,079 | +$1,103 |
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.
See how different payment amounts affect your future value
3 insights based on your inputs
46% of your future value comes from interest earnings. Compounding is working for you!
Paying at the start of each period would earn you an extra $1,103 in interest.
Over 20 periods, you're maximizing compound growth. Time is your greatest ally.
Explore other tools that might help
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.
Future Value
$18,393
Present Value
$5,735
Today's equivalent