Annuity Calculator
Calculate the future value of an annuity with regular contributions. An annuity is a series of equal payments made at regular intervals, often used in retirement planning and investment scenarios.
Future Value: $0.00
| Starting Principal | $0.00 |
|---|---|
| Total Contributions | $0.00 |
| Total Interest | $0.00 |
| Years | 0 |
Click "Calculate" to generate the accumulation schedule
Click "Calculate" to generate the accumulation schedule
About the Annuity Calculator
An annuity is a financial product that provides a series of payments made at equal intervals. Annuities are primarily used as an income stream for retirees. This calculator helps you determine the future value of an annuity based on regular contributions and compound interest.
How Annuity Calculations Work
The future value of an annuity is calculated using the following formula:
For ordinary annuity (payments at end of period):
FV = P × [(1 + r)n - 1] / r
For annuity due (payments at beginning of period):
FV = P × [(1 + r)n - 1] / r × (1 + r)
Where:
- FV = Future Value of the annuity
- P = Payment amount per period
- r = Interest rate per period
- n = Number of periods
Types of Annuities
Ordinary Annuity: Payments are made at the end of each period (most common).
Annuity Due: Payments are made at the beginning of each period.
Fixed Annuity: Provides regular, guaranteed payments of a fixed amount.
Variable Annuity: Payments vary based on the performance of the investments.
Why Calculate Annuity Future Value?
Understanding the future value of your annuity helps with:
- Retirement planning and setting savings goals
- Comparing different investment options
- Determining how much to contribute regularly to reach a financial target
- Assessing the impact of compounding on your investments