Annuity Calculator
Calculate future value of fixed annuities and regular annuity deposit contributions over time.
Annuity Future Value
Frequently asked questions
What is a fixed annuity?
A fixed annuity is a financial contract that guarantees a specified interest rate on your contributions for a set period.
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 beginning. Because every payment in an annuity due earns one extra period of interest, its value is the ordinary annuity value multiplied by (1+r). Rent and insurance premiums are annuities due; most loan payments and bond coupons are ordinary annuities.
How is the future value of an annuity calculated?
FV = PMT x [((1+r)^n - 1) / r], where r is the periodic rate and n the number of periods. The bracketed term is the future value interest factor. Note that r must match the payment frequency - a 6% annual rate paid monthly is 0.5% per period over 12n periods, not 6% over n.
Are annuity products a good investment?
They trade growth for guaranteed income, which suits people who want longevity protection and cannot tolerate sequence-of-returns risk. The costs are real: surrender charges, limited liquidity, and fees that are often opaque. Fixed, variable and indexed annuities behave very differently. This calculator models the mathematics, not the contract - read the actual terms and consider independent advice.