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Annuity Calculator

Enter the payment, the interest rate, the years and how often you pay. You get the present value, the future value, the total paid in and the interest.

Your numbers

Result

Estimate for information only, not professional advice. Last reviewed .

How we calculate it

With a rate i per period and N payments, the future value of an ordinary annuity (payments at the end of each period) is FV = PMT × ((1 + i)^N − 1) ÷ i. The present value is that amount discounted back, PV = FV ÷ (1 + i)^N. For an annuity due (payments at the start) both are multiplied by (1 + i). At 0% the value is simply payment × N.

For example, 1,000 a month for 10 years at 6% has a future value of 163,879.35 and a present value of 90,073.45. Paying at the start of each month instead makes both 0.5% larger.

Assumptions and limits

  • The payment is the same every period and the interest is compounded at the same frequency.
  • The present value is what a stream of payments is worth today at that rate. It is also the loan size those payments would repay.
  • There are no taxes, fees or inflation. Real annuity contracts differ, so check the terms.

Frequently asked questions

What is the difference between present value and future value?

The present value is what all the payments are worth today. The future value is what they grow to by the end of the last payment, with interest.

What is the difference between an ordinary annuity and an annuity due?

An ordinary annuity pays at the end of each period and an annuity due pays at the start. Because each payment of a due annuity earns one extra period of interest, its value is higher by a factor of 1 + i.

How do I use it for a loan?

The present value of the payments is the amount a loan could be, so 1,000 a month for 10 years at 6% repays a loan of 90,073.45.

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Worked example (a fixed example using the starting numbers, it does not change as you type)

Inputs: Payment each period = 1000; Interest rate per year (%) = 6; Number of years = 10; Payments per year = Monthly (12); Payments are made = At the end of each period (ordinary).

  • Present value $90,073.45
  • Future value $163,879.35
  • Total payments $120,000.00
  • Total interest $43,879.35
  • Number of payments 120

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Last reviewed: . Formulas and assumptions are described on our methodology page. For information only; not professional advice.