Annuity Calculator
Calculate the present or future value of a series of equal, regular payments - an annuity.
Future value
$205,516.83
What Your Result Means
Future value is what your series of payments will be worth after growing at your chosen interest rate. Present value is what that same series of future payments is worth in today's dollars - useful for comparing a lump sum offer against a stream of payments.
How It Is Calculated
FV = Payment × [((1 + r)^n - 1) / r]
PV = Payment × [(1 - (1 + r)^-n) / r]
Worked Example
Paying $500/month for 20 years at 5% annually grows to roughly $205,000 in future value, or is worth about $75,700 in today's dollars as a present value.
Important Assumptions
- "Ordinary" annuities pay at the end of each period (most loans); "due" annuities pay at the start (most leases, rent).
- Assumes a constant interest rate and constant payment amount throughout.
Frequently Asked Questions
- What's the difference between ordinary and due annuities?
- An ordinary annuity pays at the end of each period (like most loan payments), while an annuity due pays at the start of each period (like rent). Due annuities have a slightly higher value since payments start earning interest sooner.
Related Calculators
Methodology
This calculator uses standard time-value-of-money annuity formulas. See our methodology page for details.
This calculator provides estimates for educational purposes only. Actual rates, taxes, insurance, fees, and lender terms may differ. It does not constitute financial advice - consult a qualified financial professional before making financial decisions.