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How to use
An annuity is a stream of equal payments made at regular intervals. This calculator values that stream today or at the end of the term, or solves for the level payment required for a target present or future value.
- Choose whether to value a known payment stream or solve for a payment from a target PV or FV.
- Enter the nominal annual rate, term and payment frequency.
- Choose end-of-period ordinary payments or beginning-of-period annuity-due payments.
- Check the periodic rate and number of periods with the result.
How it is calculated
Example
Example: 1,000 paid at each year-end for 3 years at 5% has a future value of about 3,152.50. An annuity due multiplies that value by 1.05.
Important notes
This is compounding math, not financial advice or a product quote. Fees, taxes, changing returns and irregular cash-flow timing can materially change real outcomes.
Worked examples and interpreting results
Two annual payments of 100 at year-end with rate 10% have present value about 173.554 and future value 210 at the end of year two.
| Case | Calculation | Result |
|---|---|---|
| Present value | 100 ÷ 1.1 + 100 ÷ 1.1² | 173.553719 |
| Future value | 100 × 1.1 + 100 | 210 |
How to check the result
Select values from payment, two years, one payment yearly and end of period. Moving payments to period-start multiplies these values by 1.1 in this example.
Frequently asked questions
Ordinary annuity or annuity due?
Ordinary payments occur at period-end; annuity-due payments occur at period-start and therefore receive one extra period of growth for future value.
What happens at a zero rate?
Present and future value reduce to the simple sum of the payments.
Can the term be fractional years?
Yes, provided term × payments per year produces a whole number of payment periods.