💰 Annuity Calculator
Calculate the future value of regular deposits, or the periodic payment needed to reach a savings goal.
What Is an Annuity?
An annuity is a series of equal payments made at regular intervals. In personal finance, it's used to calculate the growth of regular contributions into a savings or investment account. The future value of an annuity tells you how much your regular deposits will be worth after a given number of years at a specified interest rate.
Annuity Due: FV = P × [((1 + r)ⁿ − 1) / r] × (1 + r)
where P = periodic payment, r = periodic rate, n = total periods
Ordinary Annuity vs. Annuity Due
An ordinary annuity (also called annuity-immediate) has payments at the end of each period — like most bond coupon payments and retirement withdrawals. An annuity due has payments at the beginning of each period — like rent and insurance premiums. Annuity due payments accumulate slightly more because each payment has one extra period to earn interest.
How to Use This Calculator
- Saving for retirement: Enter your planned monthly 401(k) or IRA contribution, your expected annual return, and your years until retirement to see your projected balance.
- Building an emergency fund: Enter a smaller monthly amount to see how quickly consistent saving builds your safety net.
- Education savings: Model 529 plan contributions to project your child's education fund balance at college age.