Future Value of Annuity Calculator

Calculate how your regular payments will grow over time with compound interest

Annuity Details

Regular Payment Amount ($)

Annual Interest Rate (%)

Number of Years

Compounding Frequency

Payment Frequency

Ordinary Annuity (payments at end of period)

Annuity Due (payments at beginning of period)

Annuity Future Value Results

Future Value

Value at end of annuity period

Total Payments

Principal amount contributed

Interest Earned

From compound interest

Number of Payments

Effective Annual Rate

Growth Multiple

Annuity Growth Over Time

Chart will appear after calculation

Year-by-Year Growth

Year	Payments	Interest	Balance	Cumulative Interest

Annuity Insights

Maximizing Growth

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Scenario Comparison

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1. What is the Future Value of an Annuity?

The Future Value of an Annuity (FVA) calculates how much a series of equal, periodic payments will be worth in the future, given a fixed interest rate and compounding frequency.

Types of Annuities

Type	Description	Example
Ordinary Annuity	Payments made at the end of each period.	Mortgages, retirement savings.
Annuity Due	Payments made at the beginning of each period.	Rent, lease payments.

2. Key Components of an Annuity FV Calculator

Input	Description	Example
Periodic Payment (PMT)	Fixed amount deposited each period.	$500/month
Interest Rate (r)	Annual rate of return (as a decimal).	6% → 0.06
Number of Periods (n)	Total number of payments.	10 years × 12 months = 120
Compounding Frequency	How often interest is applied (monthly, quarterly, etc.).	Monthly
Type of Annuity	Ordinary (end of period) or Due (beginning).	Ordinary

3. Future Value of Annuity Formulas

A. Future Value of an Ordinary Annuity (Payments at End of Period)

F V_{Ordinary} = P M T \times \frac{(1 + r)^{n} - 1}{r}

Example:

PMT = $500/month
Annual Rate (r) = 6% → Monthly Rate = 0.06/12 = 0.005
Periods (n) = 10 years × 12 = 120 months

B. Future Value of an Annuity Due (Payments at Beginning of Period)

F V_{Due} = P M T \times \frac{(1 + r)^{n} - 1}{r} \times (1 + r)

Same Example (Annuity Due):

F V = 500 \times \frac{(1.005)^{120} - 1}{0.005} \times 1.005 \approx

(Higher than ordinary annuity due to earlier compounding.)

4. How to Use an Annuity FV Calculator (Step-by-Step)

Enter Periodic Payment (PMT): e.g., $500/month
Input Annual Interest Rate: e.g., 6%
Select Compounding Frequency: Monthly, Quarterly, etc.
Set Number of Periods: e.g., 120 months (10 years)
Choose Annuity Type: Ordinary or Due
Click "Calculate" → Get Future Value

5. Applications of Annuity FV Calculations

✅ Retirement Planning – Estimate 401(k) or IRA growth.
✅ Loan Payments – Determine future value of mortgage payments.
✅ Investment Goals – Calculate savings needed for future expenses.
✅ Business Contracts – Evaluate lease or pension obligations.

6. Comparing Ordinary Annuity vs. Annuity Due

Factor	Ordinary Annuity	Annuity Due
Payment Timing	End of period	Start of period
FV Formula	$P M T \times \frac{(1 + r)^{n} - 1}{r}$	$F V_{Ordinary} \times (1 + r)$
Total FV (Example)	$81,939.67	$82,348.37
Common Uses	Mortgages, bonds	Rent, insurance premiums

(Annuity Due yields a higher FV due to earlier compounding.)

7. Limitations of Annuity FV Calculations

⚠ Fixed Interest Rate Assumption – Real-world rates fluctuate.
⚠ Ignores Taxes & Fees – Net returns may differ.
⚠ Requires Consistent Payments – Missed payments affect results.

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