Annuity Calculator
Calculate the future value, payout income, or present value of any annuity. Supports ordinary annuity and annuity due, with annual and monthly contributions.
📈 Future Value
How much will regular payments grow to?
💵 Payout Income
How much income from a lump sum?
🏦 Present Value
How much is needed to fund a payout?
Future Value Calculator
How much will your contributions grow to?
Future Value at End of Term
$433,769
After 25 years · Ordinary Annuity · 7.0% annual return
- Starting Principal
- $10,000
- Total Contributions
- $160,000
- Interest Earned
- $273,769
- Growth Multiple
- 2.7×
📈 Annuity Growth Over Time
📅 Year-by-Year Schedule
| Year | Start Balance | Contributions | Interest | End Balance |
|---|---|---|---|---|
| $1 | $10,000 | $6,000 | $700 | $16,700 |
| $2 | $16,700 | $6,000 | $1,169 | $23,869 |
| $3 | $23,869 | $6,000 | $1,671 | $31,540 |
| $4 | $31,540 | $6,000 | $2,208 | $39,748 |
| $5 | $39,748 | $6,000 | $2,782 | $48,530 |
| $6 | $48,530 | $6,000 | $3,397 | $57,927 |
| $7 | $57,927 | $6,000 | $4,055 | $67,982 |
| $8 | $67,982 | $6,000 | $4,759 | $78,741 |
| $9 | $78,741 | $6,000 | $5,512 | $90,253 |
| $10 | $90,253 | $6,000 | $6,318 | $102,570 |
| $11 | $102,570 | $6,000 | $7,180 | $115,750 |
| $12 | $115,750 | $6,000 | $8,103 | $129,853 |
| $13 | $129,853 | $6,000 | $9,090 | $144,942 |
| $14 | $144,942 | $6,000 | $10,146 | $161,088 |
| $15 | $161,088 | $6,000 | $11,276 | $178,364 |
| $16 | $178,364 | $6,000 | $12,486 | $196,850 |
| $17 | $196,850 | $6,000 | $13,779 | $216,629 |
| $18 | $216,629 | $6,000 | $15,164 | $237,794 |
| $19 | $237,794 | $6,000 | $16,646 | $260,439 |
| $20 | $260,439 | $6,000 | $18,231 | $284,670 |
| $21 | $284,670 | $6,000 | $19,927 | $310,597 |
| $22 | $310,597 | $6,000 | $21,742 | $338,338 |
| $23 | $338,338 | $6,000 | $23,684 | $368,022 |
| $24 | $368,022 | $6,000 | $25,762 | $399,784 |
| $25 | $399,784 | $6,000 | $27,985 | $433,769 |
Understanding Annuities
An annuity is a series of equal periodic payments made or received over time. Our annuity calculator handles three key scenarios: accumulating future value from regular contributions, calculating income from a lump sum, and finding the present value needed to fund a desired income. Use it for retirement income planning, investment projections, and comparing savings strategies. See also our retirement calculator, compound interest calculator, and Social Security calculator.
📐 Annuity Formulas
FV = PV(1+r)^n + PMT×[(1+r)^n−1]/rPV = PMT × [1−(1+r)^−n] / rPMT = PV × r / [1−(1+r)^−n]Where r = periodic rate, n = number of periods, PMT = payment per period, PV = present value, FV = future value. Annuity due: multiply the ordinary result by (1+r) — payments at the beginning of each period earn one extra period of interest.
🔁 Ordinary vs Annuity Due
- Ordinary annuity: payments at END of each period (most common)
- Annuity due: payments at BEGINNING of each period
- Annuity due always produces a higher FV (one extra period of interest)
- Mortgage payments → ordinary annuity
- Rent payments → annuity due
- Most retirement account contributions → ordinary annuity
🏷️ Types of Annuity Products
- Fixed annuity: guaranteed interest rate, predictable income
- Variable annuity: returns tied to investment portfolio, higher potential/risk
- Indexed annuity: returns linked to a market index with floor protection
- Immediate annuity: lump sum → income starts immediately
- Deferred annuity: accumulation phase → income starts later
- Lifetime annuity: guaranteed income for life regardless of longevity
⚠️ Annuity Pros and Cons
Advantages:
- Guaranteed income for life (longevity protection)
- Tax-deferred growth (non-qualified annuities)
- Predictable income stream for budgeting
Disadvantages:
- High fees (1-3%/year for variable annuities)
- Surrender charges for early withdrawal (6-8 years)
- No inheritance if you die early (life-only annuity)
- Inflation erodes fixed payments over time
— FAQ