Annuity Calculator
Calculate the future value of an annuity based on your periodic contributions.
What is an Annuity?
An annuity is a series of equal payments made at regular intervals. The future value of an annuity shows how much those payments will be worth at a future date, accounting for compound interest.
How to Use This Calculator
- Enter your periodic payment amount and the annual interest rate you expect to earn.
- Enter the number of years you plan to contribute.
- Select whether payments are monthly or yearly, and whether they occur at the beginning or end of each period.
- Click Calculate to see the future value, total contributions, and interest earned.
Frequently Asked Questions
What is the difference between ordinary and annuity due?
Ordinary annuity payments occur at the end of each period. Annuity due payments occur at the beginning, so each payment earns one extra period of interest, resulting in a higher future value.
Can I use this for retirement planning?
Yes, this calculator is ideal for estimating the growth of regular retirement contributions such as 401k or IRA deposits.
What interest rate should I use?
Use a conservative long-term average based on your investment mix. For example, 6-7% for a balanced stock and bond portfolio, or 2-3% for savings accounts.
Does this calculator account for taxes or inflation?
No, this calculator shows nominal future value. You may want to reduce your expected rate of return to account for inflation or taxes.