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Future Value of Annuity Calculator
Calculate how much your regular payments will grow with compound interest. Compare ordinary annuity vs annuity due and visualize your investment growth.
Formula:FV = PMT × [(1+r)^n - 1] / r
Future Value
$47,230
After 30 payments of $500 at 7% annual interest
Breakdown
Total Contributions
Your payments
$15,000
Interest Earned
Compound growth
$32,230
Future Value
Total accumulated
$47,230
Key Metrics
Effective Annual Rate7.00%
Interest / Contributions214.9%
Growth Multiple3.15x
Quick Scenarios
Payment Details
Enter your annuity parameters
$
Amount paid each period
%
Expected annual return
Total number of payments
12 for monthly, 4 for quarterly, etc.
How often interest is calculated
When payments are made
Future Value
$47,230
Total accumulated
Total Contributions
$15,000
30 payments
Interest Earned
$32,230
214.9% of contributions
Effective Rate
7.00%
After compounding
Investment Growth Over Time
See how your contributions and interest compound over 30 periods
How to read this chart: The blue area shows your total contributions, and the green area shows accumulated interest. The total height at any point is your account balance. Notice how interest grows faster over time due to compounding.
Cash Flow Timeline
Visualization of your payment schedule and final future value
Future Value at Period 29
$47,230
Your regular payments grow to
this amount with compound interest
Balance Growth
Track your total balance over time
Period-by-Period Breakdown
| Period | Payment | Interest | Balance | Cum. Interest |
|---|---|---|---|---|
| 1 | $500 | $0 | $500 | $0 |
| 2 | $500 | $35 | $1,035 | $35 |
| 3 | $500 | $72 | $1,607 | $107 |
| 4 | $500 | $113 | $2,220 | $220 |
| 5 | $500 | $155 | $2,875 | $375 |
| 6 | $500 | $201 | $3,577 | $577 |
| 7 | $500 | $250 | $4,327 | $827 |
| 8 | $500 | $303 | $5,130 | $1,130 |
| 9 | $500 | $359 | $5,989 | $1,489 |
| 10 | $500 | $419 | $6,908 | $1,908 |
| 11 | $500 | $484 | $7,892 | $2,392 |
| 12 | $500 | $552 | $8,944 | $2,944 |
| 13 | $500 | $626 | $10,070 | $3,570 |
| 14 | $500 | $705 | $11,275 | $4,275 |
| 15 | $500 | $789 | $12,565 | $5,065 |
| 16 | $500 | $880 | $13,944 | $5,944 |
| 17 | $500 | $976 | $15,420 | $6,920 |
| 18 | $500 | $1,079 | $17,000 | $8,000 |
| 19 | $500 | $1,190 | $18,689 | $9,189 |
| 20 | $500 | $1,308 | $20,498 | $10,498 |
| 21 | $500 | $1,435 | $22,433 | $11,933 |
| 22 | $500 | $1,570 | $24,503 | $13,503 |
| 23 | $500 | $1,715 | $26,718 | $15,218 |
| 24 | $500 | $1,870 | $29,088 | $17,088 |
Showing first 24 of 30 periods. Export to CSV for full data.
Formulas Used
Ordinary Annuity (End of Period)
FV = PMT x [(1+i)^n - 1] / iAnnuity Due (Beginning of Period)
FV = PMT x [(1+i)^n - 1] / i x (1+i)Future Value
$47,230
After 30 payments of $500 at 7% annual interest
Breakdown
Total Contributions
Your payments
$15,000
Interest Earned
Compound growth
$32,230
Future Value
Total accumulated
$47,230
Key Metrics
Effective Annual Rate7.00%
Interest / Contributions214.9%
Growth Multiple3.15x
Quick Answer: What is the Future Value of an Annuity?
The future value of an annuity is the total amount accumulated after making regular payments over time with compound interest. For ordinary annuities (payments at end): FV = PMT x [(1+i)^n - 1] / i. For annuity due (payments at beginning): multiply by (1+i). Example: $500/month at 7% for 30 years grows to approximately $566,764.
Key Facts
- Ordinary annuity: payments made at the END of each period
- Annuity due: payments made at the BEGINNING of each period (results in ~3-8% higher FV)
- More frequent compounding increases the future value
- The power of compounding grows exponentially over longer time periods
- A growing annuity models payments that increase at a constant rate
- Perpetuity: an annuity that continues forever (PV = PMT / r)
- Rule of 72: divide 72 by interest rate to estimate years to double
Adjust Interest Rate
See how interest rate affects your future value
1%7%15%
Personalized Insights
4 insights based on your inputs
Good News
Your interest earnings ($32,230) exceed your total contributions—compound growth is working powerfully for you!
Note
Switching to beginning-of-period payments (annuity due) would add $3,306 to your final balance—each payment earns one extra period of interest.
Good News
With annual compounding, your effective annual rate is 7.00%—higher than the stated 7%.
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Frequently Asked Questions
The future value of an annuity is the total amount you will have accumulated after making a series of equal payments over time, with each payment earning compound interest. It answers the question: "How much will I have in the future if I invest a fixed amount regularly?"
An ordinary annuity makes payments at the END of each period (like most savings accounts), while an annuity due makes payments at the BEGINNING of each period (like rent). Annuity due results in a higher future value because each payment has one extra period to earn interest.
More frequent compounding results in a higher future value. For example, at 12% annual interest, $1,000 invested for one year grows to $1,120 with annual compounding, but $1,126.83 with monthly compounding. The difference becomes more significant over longer time periods.
A growing annuity is a series of payments that increase at a constant rate each period. This is useful for modeling retirement savings where contributions grow with salary increases. The formula accounts for both the growth rate (g) and the interest rate (i).
A perpetuity is an annuity that continues forever. While its future value would be infinite, we can calculate its present value using PV = PMT / r for ordinary perpetuities, or PV = PMT / (r - g) for growing perpetuities where r > g.
To find the required payment: 1) Determine your target future value (retirement goal), 2) Estimate your expected return rate, 3) Calculate the number of periods until retirement, 4) Use the formula PMT = FV x i / [(1+i)^n - 1] to find the required periodic payment.
For retirement planning, historical stock market returns average 7-10% annually before inflation. A conservative estimate is 6-7% after inflation. For savings accounts, use current rates (typically 4-5% in high-yield accounts). Always consider inflation and use real (inflation-adjusted) returns for long-term planning.
Most investment accounts and savings plans operate as ordinary annuities (contributions at end of period). Annuity due is less common but applies to rent, insurance premiums, and some retirement contributions. Choose based on when your actual payments occur.
Joseph OrdunaFounder & Software Engineer
Full-stack software engineer specializing in embedded systems, web architecture, and AI/ML. Founder of Practical Web Tools. Built the gesture-controlled drone IP acquired by KD Interactive (Aura Drone, sold on Amazon).
Future Value
$47,230
After 30 payments of $500 at 7% annual interest
Breakdown
Total Contributions
Your payments
$15,000
Interest Earned
Compound growth
$32,230
Future Value
Total accumulated
$47,230
Key Metrics
Effective Annual Rate7.00%
Interest / Contributions214.9%
Growth Multiple3.15x