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Free Annuity Calculator — Future Value & Present Value

Calculate the future value or present value of any annuity — ordinary or annuity-due. Enter your payment amount, interest rate, and time period for an instant result.

This free annuity calculator applies the standard annuity formulas to project the future value of a series of regular payments, or to find the present value of future income streams. Supports both ordinary annuities (end-of-period payments) and annuities-due (beginning-of-period). No sign-up required.

What Is an Annuity?

An annuity is any series of equal cash flows paid or received at regular intervals over time. The term covers a wide range of financial products and calculations: savings plans, loan payments, pensions, insurance payouts, and retirement income streams all follow annuity math.

There are two primary annuity calculations: future value — how much your regular deposits will accumulate to — and present value— how much a stream of future payments is worth in today's dollars. Both are essential for retirement planning, loan analysis, and insurance comparisons.

The distinction between an ordinary annuity (payments at end of period) and an annuity-due (payments at beginning of period) affects every calculation by exactly one period of interest. Use this calculator alongside the retirement calculator to model income streams, or the compound interest calculator for lump-sum projections.

How to Use This Annuity Calculator

  1. 1

    Choose Future Value or Present Value

    Select Future Value (FV) if you want to know how much a series of deposits will be worth — for example, saving $500/month in a retirement account. Select Present Value (PV) if you want to know what a stream of future payments is worth today — for example, valuing a pension or annuity income stream.

  2. 2

    Enter Your Payment Amount

    Enter the periodic payment amount. This can be monthly (e.g. $500/month), annual (e.g. $6,000/year), or any consistent interval. The calculator uses the same period for the interest rate and payment frequency.

  3. 3

    Set the Interest Rate and Period

    Enter the interest rate per period. For monthly payments, enter the monthly rate (annual rate ÷ 12). For annual payments, enter the annual rate. The number of periods equals years × payments per year.

  4. 4

    Select Ordinary Annuity or Annuity-Due

    Choose "Ordinary" if payments occur at the end of each period (most loans and savings plans). Choose "Annuity-Due" if payments are at the beginning (rent, insurance). The annuity-due result is always higher by a factor of (1 + r) per period.

Annuity Formulas Explained

FV (Ordinary) = PMT × [((1 + r)n − 1) / r]

Example: $500/month at 5%/12 for 240 months: FV = $500 × [(1.004167240 − 1) / 0.004167] = $205,516

PV (Ordinary) = PMT × [(1 − (1 + r)−n) / r]

Example: $1,000/year for 20 years at 6%: PV = $1,000 × [(1 − 1.06−20) / 0.06] = $11,470

Annuity-Due = Ordinary Annuity × (1 + r)

An annuity-due is always higher than an ordinary annuity by one period of growth. At 6%, a $11,470 ordinary annuity PV becomes $12,158 as an annuity-due.

Real-World Annuity Examples

See how annuity math applies to savings, income, and retirement planning.

Savings FV: $500/month for 20 Years at 5%

Contributing $500/month at a 5% annual rate for 20 years accumulates to $205,516. Total deposits: $120,000. Interest earned: $85,516. This is the classic savings annuity calculation — the foundation of 401(k) and IRA projections. The 71% gain over deposited amount is entirely from compounding.

Annual FV: $1,000/year for 30 Years at 7%

Annual deposits of $1,000 at 7% for 30 years grow to $94,461. Total deposits: $30,000. Investment growth: $64,461 — more than double the total deposited. This example shows why even a small annual IRA contribution started early produces a disproportionately large retirement balance.

Income PV: $1,000/year for 20 Years at 6% — Present Value

The present value of receiving $1,000/year for 20 years, discounted at 6%, is $11,470. This means if you have $11,470 invested today at 6%, you can withdraw exactly $1,000/year for 20 years and reach $0 at year 20. This is the core valuation formula used to price pensions, structured settlements, and insurance annuities.

Frequently Asked Questions

What is an annuity?
An annuity is a series of equal payments made at regular intervals — monthly, quarterly, or annually — over a fixed time period. Examples include monthly mortgage payments, pension income, 401(k) withdrawals, and insurance payouts. Annuity math calculates either how much a series of future payments is worth today (present value) or how much your regular payments will accumulate to (future value).
What is the difference between an ordinary annuity and an annuity-due?
An ordinary annuity (annuity-immediate) makes payments at the END of each period — like a mortgage or car loan payment. An annuity-due makes payments at the BEGINNING of each period — like rent or insurance premiums. An annuity-due is always worth more than an ordinary annuity by a factor of (1 + r) because each payment earns one extra period of interest.
How is annuity future value calculated?
$500/month at 5% for 20 years has a future value of $205,516 — calculated as FV = $500 × [((1 + 0.05/12)^240 − 1) / (0.05/12)]. The formula accumulates each payment forward to the end of the period. The higher the interest rate and the longer the period, the more powerful the compounding effect becomes.
What is the present value of an annuity?
Present value is how much a series of future payments is worth in today's dollars. $1,000/year for 20 years at 6% discount rate has a present value of $11,470 — meaning $11,470 invested today at 6% could fund $1,000 annual withdrawals for exactly 20 years. PV = $1,000 × [(1 − (1.06)^−20) / 0.06] = $11,470.
What is a good annuity rate?
4–6% is the typical payout rate for a fixed immediate annuity purchased from an insurance company in 2024–2025. A $500,000 annuity purchased at age 65 typically pays $2,500–$3,200/month for life, depending on the rate environment, your age, and whether it includes a survivor benefit. Higher rates in 2023–2024 made annuity payouts significantly more attractive than in the 2010s.
How much does a $500,000 annuity pay per month?
$500,000 in a fixed immediate annuity for a 65-year-old typically pays $2,500–$3,200/month for life (approximately 6–7.5% payout rate). A 20-year period-certain annuity at 5% pays approximately $3,299/month. A 30-year fixed annuity at 5% pays $2,684/month. Actual payments vary by insurer, your age, gender, and current interest rates.

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