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- Finds the future value of regular payments into an annuity.
- Finds the present value of a stream of income payments.
- Finds the payout a lump sum can give until it runs out.
- Handles monthly, quarterly, twice-yearly or yearly payments, at the start or end of each period.
How to use the annuity calculator
Choose what to calculate
Future value, present value or payout.
Enter the payment or lump sum
For example $500 a month, or $300,000.
Enter the rate and years
For example 6% for 20 years.
Choose the timing
End of period (ordinary annuity) or start of period (annuity due).
Annuity formulas
An annuity is a series of equal payments at regular intervals. Its value depends on the payment, the interest rate per period and the number of payments. Payments at the start of each period (annuity due) earn one extra period of interest.
Formulas (i = rate per period, n = number of payments)
Future value = P × ((1 + i)^n − 1) ÷ i
Present value = P × (1 − (1 + i)^−n) ÷ i
Payout = lump sum × i ÷ (1 − (1 + i)^−n)
For an annuity due, multiply the FV or PV by (1 + i).
Example 1: $500 a month for 20 years at 6%
Future value.
- Future value $231,020.45
- Total paid in $120,000
- Interest earned $111,020.45
- As an annuity due $232,175.55
Example 2: present value
The same 240 payments of $500 at 6%.
- Present value $69,790.39
Example 3: payout from $300,000
At 5% for 20 years, paid monthly.
- Monthly payout $1,979.87
- Total paid out $475,168.13
Where the annuity calculator helps
Retirement income
See how long a lump sum can pay you.
Regular saving
See what monthly contributions grow to.
Lottery and settlements
Compare a lump sum with yearly payments.
Pensions
Value a stream of future payments today.
Real annuity products can have fees, surrender charges and changing rates. For withdrawal planning, also try the how long will my money last calculator or the present value calculator.
Annuity calculator FAQ
What is an annuity?
A series of equal payments made at regular intervals, such as monthly retirement income or monthly savings deposits.
What is the difference between an ordinary annuity and an annuity due?
An ordinary annuity pays at the end of each period; an annuity due pays at the start, so it earns slightly more.
How much does $300,000 pay per month?
At 5% for 20 years, about $1,979.87 a month until the money runs out.
What is the future value of $500 a month for 20 years at 6%?
About $231,020.45.
What is the present value of an annuity?
The lump sum you would need today, at the given rate, to fund the same payments.
Does this include fees or taxes?
No. It shows the pure math at a fixed rate.