Annuity Calculator
Calculate annuity present value and future value. Determine the worth of regular payments over time.
Annuity Details
Total: 240 months (20.0 years)
Annuity Summary
How Annuity Calculations Work
Understanding Annuities
An annuity is a series of equal payments made at regular intervals. Common examples include mortgage payments, car loans, retirement income, and insurance premiums. Our annuity calculator helps you determine the present value (what it's worth today) or future value (what it will be worth later) of these payments.
Present Value Formula:
This calculates the current value of future annuity payments, discounted at the given interest rate.
Future Value Formula:
This calculates the value of annuity payments at a future date, compounded at the given interest rate.
Types of Annuities
Ordinary Annuity
Payments made at the end of each period (most common)
Annuity Due
Payments made at the beginning of each period
Fixed Annuity
Fixed payments over the term
Variable Annuity
Payments vary with investment performance
Key Features
💰 Present & Future Value
Calculate both present value (what future payments are worth today) and future value (what payments will be worth later).
📊 Flexible Payment Terms
Input any payment amount, interest rate, and number of periods to see how they affect annuity values.
⚡ Instant Calculations
Get immediate results as you adjust inputs. Perfect for comparing different annuity scenarios.
📈 Detailed Breakdown
See total payments, interest earned, and the relationship between present and future values.
Why Use an Annuity Calculator?
Plan Retirement Income
Use the annuity calculator to determine how much you need to invest now to receive a specific monthly income in retirement, or calculate how much income a lump sum will generate.
Evaluate Loan Options
Compare different loan offers by calculating the present value of payments. Lower present value means less total cost.
Understand Investment Value
Determine if an annuity investment makes sense by comparing its present value to other investment options.
Tips for Using Annuities
1. Compare Present vs. Future Value
Present value shows what future payments are worth today, while future value shows what payments will be worth later. Use both to make informed decisions.
2. Consider Tax Implications
Annuity payments may be taxable. Factor in your tax bracket when evaluating annuity returns compared to other investments.
3. Understand Fees and Expenses
Many annuities have fees that reduce returns. Compare the net return (after fees) to other investment options.
Frequently Asked Questions
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- Compound Interest Calculator - Calculate compound growth