Annuity Calculator
Work out what regular payments grow to, or are worth today.
What an annuity is
In finance, an annuity is a series of equal payments at regular intervals. It could be your monthly savings deposits, a pension, or loan repayments. The calculator finds what a series of deposits grows to, or what a series of future payments is worth in today’s money.
Example
Saving $500 a month for 20 years at 5%, with deposits at the end of each month, grows to about $205,500, of which $120,000 is your deposits. A stream of $1,000 a month for 20 years is worth about $151,525 today at a 5% discount rate.
Payments made at the start of each period (an “annuity due”) are worth slightly more than payments made at the end, because each one earns an extra period of interest. Commercial annuity products, which insurers sell, also include fees and payout rules that this calculator does not model.
Frequently asked questions
What is an ordinary annuity?
One where payments are made at the end of each period, which is the usual case for loans and many savings plans.
How is this different from compound interest?
Compound interest looks at one lump sum. An annuity looks at a series of regular payments.
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