Annuity Calculator

Enter your periodic payment, interest rate, payment frequency, and time horizon to calculate your annuity's future value, total interest earned, and a full year-by-year growth breakdown.

Created by Luis GonzalezLast updated: June 12, 2026

How to Use This Calculator

1
Enter the Periodic Payment
Input the amount of money you will contribute or receive each period (e.g., monthly or quarterly).
2
Set the Annual Interest Rate
Enter the nominal annual interest rate as a percentage.
3
Specify Payments Per Year
Enter how many payments are made per year — 12 for monthly, 4 for quarterly, or 1 for annually.
4
Enter the Number of Years
Input the total number of years over which payments will be made.
5
Review Results
View the future value of the annuity and the total amount of payments you will have made.

Example Calculation

An investor making monthly contributions to a tax-deferred annuity over 15 years.

Periodic Payment

$500

Annual Interest Rate

Payments Per Year

Number of Years

Results

Future value of the annuity

$145,409. Total payments made: $90,000. Total interest earned: $55,409.

Tips

Start Early for Maximum Compounding

Beginning contributions even 5 years earlier can add tens of thousands in additional growth due to the exponential nature of compound interest.

Use Monthly Over Annual Payments

More frequent contributions put your money to work sooner, resulting in a slightly higher future value compared to the same total contributed annually.

Adjust for Inflation

A 6% nominal return with 3% inflation yields roughly 3% real growth. Consider whether your future value target accounts for purchasing power erosion.

Compare Ordinary vs. Annuity Due

This calculator assumes end-of-period payments (ordinary annuity). If your payments occur at the start of each period, use the annuity due calculator for a more accurate result.

Projecting Annuity Growth with Compound Interest

The Annuity Calculator shows how regular payments accumulate over time with compound interest. Enter your payment amount, interest rate, frequency, and term to see the future value, total interest earned, and contributions. An insights panel reveals your final-year interest acceleration, when interest crosses over contributions, and the growth multiple on your money. A year-by-year chart and table track the buildup.

Ordinary Annuity Future Value Formula

r_period = Annual Interest Rate / Payments Per Year
n_periods = Payments Per Year x Number of Years
FV = Payment x (((1 + r_period)^n_periods - 1) / r_period)

💡 For annuity due (beginning-of-period payments), our Annuity Due Payment Calculator shows the required payment to reach a specific goal with the timing advantage.

$350 Monthly for 25 Years at 7%

A 35-year-old professional contributes $350 monthly to an annuity earning 7% annually, targeting retirement at 60.

The calculator shows:

Future Value: $283,525 — $105,000 contributed + $178,525 interest over 25 years
Total Interest Earned: $178,525 — interest exceeds contributions, compounding working hard
Total Contributions: $105,000 — $350 paid monthly over 25 years

The insights panel reveals:

Final Year Interest: $18,959 earned in year 25 alone — 4.5x the $4,200 annual contributions
Interest Crossover: By year 19, cumulative interest exceeds total contributions — your money is working harder than you are
Growth Multiple: 2.70x means your money nearly triples — 63% of the final balance is pure interest

💡 To find the present value of future annuity payments, our Annuity Due Present Value Calculator shows what a payment stream is worth today.

The Exponential Nature of Compounding

Annuity growth is not linear — it accelerates over time. At $350/month and 7%, the first 5 years generate just $4,058 in interest. Years 6-15 generate $43,879. Years 16-25 generate $130,588. The final decade produces over 32x the interest of the first — this is why time is the most powerful variable in any savings equation. In 2026, starting even 5 years earlier can add $100,000+ to your retirement balance at typical market returns.

Choosing the Right Interest Rate Assumption

The interest rate you enter should reflect realistic long-term returns for your investment type. For stock-heavy portfolios, 7-10% historically (before inflation). For balanced 60/40 portfolios, 5-7%. For fixed annuity products, 3-5% in 2026. For conservative bonds, 4-5%. Using an overly optimistic rate leads to underfunding your goal, while too conservative a rate may cause unnecessary sacrifice. A common approach is modeling at 7% nominal or 4% real (after 3% inflation).

Frequently Asked Questions

What is the future value of an annuity?

The future value of an annuity is the total amount your series of equal periodic payments will be worth at a specified date in the future, including all accumulated compound interest. It is calculated using the formula FV = PMT x [((1 + r)^n - 1) / r].

What is the difference between an ordinary annuity and an annuity due?

An ordinary annuity makes payments at the end of each period (e.g., bond coupon payments), while an annuity due makes payments at the beginning (e.g., rent). Because annuity due payments are invested one period sooner, the future value of an annuity due is always higher.

How does the payment frequency affect annuity growth?

More frequent payments result in a higher future value because each payment begins earning interest sooner. For example, investing $6,000 per year at 6% for 15 years yields about $139,656 with annual payments but approximately $145,409 with equivalent $500 monthly payments.

Can I use an annuity calculator for retirement planning?

Yes. Enter your planned monthly contribution, expected rate of return, and years until retirement to project how much your savings will grow. For a complete picture, also account for employer matches, inflation, and any existing savings.