Compute the future value or present value of a stream of equal payments.
Estimates only — not financial advice. Assumes payments at period end (ordinary annuity). Verify with your advisor.
An annuity calculator turns a stream of equal payments into a single number — either what they grow to by the end of the term (future value) or what they are worth today (present value) — using the rate per period and the total number of payments.
The future value of an annuity is what a series of equal payments will be worth at the end of the term once interest is added. It uses FV = PMT x (((1 + i)^n - 1) / i), where i is the rate per period (annual rate divided by payments per year) and n is the total number of payments. Results are estimates, not financial advice.
The present value of an annuity is what a series of future equal payments is worth today, given a discount rate. It uses PV = PMT x ((1 - (1 + i)^-n) / i), where i is the rate per period and n is the total number of payments. A higher rate lowers the present value.
Payments per year set how often interest compounds and how many total payments there are. The rate per period is the annual rate divided by the payment frequency, and the number of periods is years multiplied by the frequency. Monthly payments compound more often than annual ones.