Future Value of Annuity Calculator
See what a stream of equal (or rising) payments grows to with compound interest. Choose an ordinary annuity or an annuity due, add a starting balance, set any payment and compounding frequency, and get the future value with a full breakdown, the worked steps, and a year by year schedule.
Formula
Worked example
500 paid at the end of every month for 10 years (120 payments) at 6% annual, so 0.5% per month: FV = 500 × ((1.005^120 − 1) / 0.005) ≈ 81,940. You contributed 60,000, so roughly 21,940 is interest. Switching to an annuity due multiplies that by 1.005 to about 82,350.
What the future value of an annuity tells you
An annuity is a series of equal payments made at regular intervals, a monthly retirement contribution, a recurring deposit, or a structured payout. The future value is what that whole stream is worth at the end of the term once every payment has earned compound interest. Earlier payments compound for longer, so they contribute more to the final balance than later ones, which is why starting sooner has such an outsized effect. This calculator also lets you add a starting balance that compounds alongside the payments, and a payment growth rate if your contributions rise over time.
Ordinary annuity versus annuity due
Choose the timing of your payments. An ordinary annuity places each payment at the end of the period, while an annuity due places it at the start, giving every contribution one extra compounding interval. To convert, multiply the ordinary annuity result by (1 + i). The difference is small for low rates but grows with the interest rate and the number of periods, so the timing assumption matters for long horizons. Leases and insurance premiums are usually annuities due; most savings plans and loan payments are ordinary annuities.
Matching the rate to the payment frequency
The rate and the period count must use the same frequency as the payments. The easiest mode lets you enter a nominal annual rate and pick a payment frequency, and the calculator divides the rate and converts the years for you, so 6% paid monthly for ten years becomes 0.5% per month over 120 periods. If you prefer, switch to the periodic mode and enter the per period rate and period count directly. Mixing an annual rate with a monthly payment schedule is the most common mistake and will badly overstate the future value.
Growing annuities and a starting balance
If your payments rise by a fixed percentage each period, for example a yearly raise that lifts your contribution, enter that growth rate to model a growing annuity. The future value formula adjusts to account for both the interest rate and the growth rate. A starting balance is treated as a lump sum that compounds at the same periodic rate for the full term and is added to the grown payment stream. The year by year schedule shows how the payments, interest, and balance build up so you can see the path, not just the final number.
Annual rate to periodic rate
| Payment frequency | Periods per year | Periodic rate at 6% annual |
|---|---|---|
| Monthly | 12 | 0.500% |
| Quarterly | 4 | 1.500% |
| Semi-annual | 2 | 3.000% |
| Annual | 1 | 6.000% |
| Weekly | 52 | 0.115% |
Convert a nominal annual rate to the per-period rate this calculator expects.
Frequently asked questions
What is the difference between an ordinary annuity and an annuity due?
An ordinary annuity pays at the end of each period, while an annuity due pays at the start. Because an annuity due gives every payment one extra period of compounding, its future value is the ordinary annuity result multiplied by (1 + i). Pick the timing that matches your payments using the toggle.
What is the difference between future value and present value of an annuity?
Future value is what a stream of payments grows to at the end of the term, after compounding. Present value is what that same stream is worth today, discounting each future payment back to the present. This tool computes future value.
How do I find the periodic rate from an annual rate?
Divide the nominal annual rate by the number of payments per year. A 6% annual rate with monthly payments is 6% ÷ 12 = 0.5% per period, and ten years becomes 120 periods. The annual rate mode does this conversion for you automatically.
What is a growing annuity?
A growing annuity is one where each payment is larger than the last by a fixed percentage, for example contributions that rise with a yearly raise. Enter a payment growth rate to model it. The calculator uses the growing annuity future value formula, which accounts for both the interest rate and the growth rate.
What happens if the interest rate is zero?
With no interest and no payment growth, the future value is simply the payment multiplied by the number of periods, you get back exactly what you put in, with no compounding. The calculator handles this case directly.