Annuity Calculator
PV + FV
📘 Understanding Annuities & How This Calculator Helps
An annuity is a series of equal payments made at regular intervals. Whether you are saving for retirement (future value) or evaluating a stream of future income (present value), this annuity calculator gives you instant financial clarity.
🔎 What results you get
Future Value (FV) – total value of all payments plus compound interest at the end of the term.
Present Value (PV) – how much the future payment stream is worth in today's money, discounted at the given interest rate.
Total Payments – sum of all your contributions.
Total Interest – the additional amount earned (FV minus total payments).
⚙️ Ordinary Annuity vs. Annuity Due
Ordinary annuity (end of period): payments occur at the end of each period — typical for mortgages, loan repayments, or standard investment contributions.
Annuity Due (beginning of period): payments occur at the start — common for rent, insurance premiums, or retirement withdrawals. Due to earlier compounding, annuity due yields higher future and present values.
📐 The Mathematical Formulas Used
Future Value Ordinary Annuity: FV = Pmt × [((1+r)n - 1) / r]
Present Value Ordinary Annuity: PV = Pmt × [1 - (1+r)-n] / r
where r = periodic interest rate, n = total number of periods. For Annuity Due, multiply both results by (1+r).
💡 How to Use
- Enter your payment amount per period (e.g., $500 monthly).
- Set the annual interest rate and number of years.
- Choose frequency (monthly, quarterly, etc.) so the rate matches the payment schedule.
- Toggle payment timing based on when you make/receive payments.
- Click "Calculate Annuity" for instant figures — perfect for retirement planning, loan analysis, savings goals.
⚠️ Important note: This calculator assumes constant payments, fixed interest rate, and compounding aligned with payment frequency. It is an ideal tool for educational and professional planning purposes.
✅ SEO Tip: Use this tool to compare investment strategies, loan repayments, or pension annuities. Bookmark and share for financial clarity.
