Annuity Calculator
Calculate the future value of an annuity based on regular payments, interest rate, years, and payment frequency.
Future Value
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Total Contributions
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Total Interest
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What is Annuity Calculator?
An annuity calculator projects how much a series of regular payments will grow over time when invested at a given interest rate. It helps you plan for retirement or savings goals by showing the future value of consistent contributions, along with how much of that value comes from your contributions versus interest earned.
How to use
- 1 Enter your regular payment amount (per period).
- 2 Enter the annual interest rate expected on the annuity.
- 3 Enter the number of years you will make contributions.
- 4 Select your payment frequency — annual, quarterly, or monthly.
- 5 The future value, total contributions, and total interest appear instantly.
Formula
Example calculation
Monthly payment of $500 at 6% annual return for 20 years: r = 0.06/12 = 0.005, n = 240. FV = $500 × [(1.005)²⁴⁰ − 1] / 0.005 ≈ $231,020. Total contributed: $120,000. Interest earned: $111,020.
Frequently asked questions
What is an ordinary annuity vs annuity due?
An ordinary annuity makes payments at the end of each period. An annuity due makes payments at the beginning, resulting in slightly higher future value. This calculator uses the ordinary annuity formula.
How does payment frequency affect growth?
More frequent payments compound more often and generally produce higher future values. Monthly contributions at the same annual total will outperform annual contributions because money enters sooner and earns interest longer.
Is annuity interest guaranteed?
Fixed annuities offer a guaranteed rate. Variable annuities depend on underlying investment performance. This calculator uses whatever rate you enter — for planning, use a conservative estimate.
What is a realistic return rate?
Fixed annuities typically pay 3%–5%. Variable annuities tied to stock indexes have historically averaged 6%–8% over long periods, though past performance does not guarantee future results.
How is this different from a savings account?
The math is the same — both use compound interest on periodic contributions. The key difference is that annuities are insurance products with specific tax treatment and surrender periods, while savings accounts are flexible.