Annuity Calculator
Calculate the future value and present value of a series of regular payments, using standard annuity formulas.
Future value vs. present value
Future value tells you what a series of regular payments will grow to by the end of the term, accounting for compound interest along the way — useful for projecting retirement contributions or systematic savings plans.
Present value tells you the equivalent lump sum today that would be worth the same as that entire stream of future payments — useful for comparing an annuity payout against a one-time settlement offer, or valuing a pension stream.
This calculator models an ordinary annuity
This calculator assumes an 'ordinary annuity,' where payments occur at the end of each period (the most common structure for loans and many savings plans) rather than an 'annuity due,' where payments occur at the beginning of each period. The distinction produces a small but real difference in the result, so check which structure applies to your specific situation.
It also assumes monthly compounding matching monthly payments — for annual or quarterly payment schedules, the underlying math is the same but would need the compounding frequency adjusted to match.
Frequently asked questions
What's the difference between an ordinary annuity and an annuity due?
In an ordinary annuity, payments happen at the end of each period; in an annuity due, they happen at the beginning. This calculator models an ordinary annuity, which is the more common structure for loans and standard savings plans.
When would I use present value instead of future value?
Present value is useful when comparing a stream of future payments (like a pension or settlement) against an equivalent lump sum offered today — it tells you what that future income stream is actually worth in today's dollars.