Annuity Calculator
Calculate the value or the periodic payment of an annuity.
Tip: An ordinary annuity pays at the end of the period; an annuity due pays at the start.
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About this digital tool
The annuity calculator works out the present value, future value or periodic payment of a series of equal payments at regular intervals. Choose what you want to find, enter the interest rate, the number of periods and the values you know, and the tool performs the calculation with the standard annuity formulas. You can choose an ordinary annuity (payments at the end of the period) or an annuity due (at the start).
Annuities sit behind equal-instalment loans, private pensions, life insurance and regular savings plans. The tool suits finance students and anyone comparing payment alternatives. The result is an estimate and assumes a constant rate throughout.
How to use
- Choose what to calculate (the payment, the present value or the future value).
- Enter the known values (rate, periods, amount).
- See the result.
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; an annuity due pays at the start. The value of an annuity due is slightly higher.
What is an annuity in finance?
It is a series of equal payments made at regular intervals, e.g. every month. Examples are loan instalments or regular contributions to a pension fund.
How is the present value of an annuity calculated?
Each payment is discounted at the rate and their values are added up. The short formula is PV = PMT × (1 − (1 + r)^−n) ÷ r for an ordinary annuity.
When is an annuity due used?
When payments are made at the start of each period, such as prepaid rent. Its value is slightly higher than an ordinary annuity for the same inputs.