💰 Financial
Annuity Calculator
Calculate the future value of a growing annuity. See how a series of regular payments grows over time with compound interest.
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Formula
FV = PMT × [((1+r)^n - 1) / r]FV- Future Value of the annuity
PMT- Payment amount per period
r- Interest rate per period
n- Number of periods
Example
Monthly Savings Annuity
Depositing $500 at the end of every month into an account earning 6% annually for 15 years.
- Convert to monthly values: r = 0.06 / 12 = 0.005, n = 15 × 12 = 180.
- Apply formula: $500 × [((1+0.005)^180 - 1) / 0.005].
- Result: The future value of this ordinary annuity is $145,409.36.
Frequently Asked Questions
In an ordinary annuity, payments are made at the end of the period. In an annuity due, payments are made at the beginning of the period. Annuities due accumulate slightly more interest.