Our Annuity Calculator helps you estimate future annuity values and plan retirement income effectively. Easily calculate ordinary annuities and annuities due to understand your potential payouts and savings growth. Make informed financial decisions with our free tool.
Formula:
An annuity is a series of equal payments made at regular intervals. Our calculator uses the following formulas, accounting for compounding frequency and whether payments are made at the beginning (Annuity Due) or end (Ordinary Annuity) of each period.
Key Annuity Formulas:
Future Value of an Ordinary Annuity (FVOA):
FV = P × [((1 + r)ⁿ - 1) / r]
Future Value of an Annuity Due (FVAD):
FV = P × [((1 + r)ⁿ - 1) / r] × (1 + r)
Payment (P) to achieve a Future Value (Ordinary Annuity):
P = FV / [((1 + r)ⁿ - 1) / r]
Payment (P) to achieve a Future Value (Annuity Due):
P = FV / ([((1 + r)ⁿ - 1) / r] × (1 + r))
Where:
- FV = Future Value of the Annuity
- P = Payment per period
- r = Interest rate per period (Annual Interest Rate / Compounding Frequency)
- n = Total number of periods (Number of Years × Compounding Frequency)
The calculator dynamically applies the appropriate formula based on your inputs.