What Is the Annuity Calculator?
An annuity calculator values a series of equal payments made at regular intervals — the backbone of pensions, retirement contributions, and structured payouts. It computes both the future value your contributions grow to and their present value today.
How to use this calculator
Type your numbers into the fields above. The results change the moment you edit any input, so you can try one scenario after another and see exactly what moves. Most calculators show a short summary of the key figures, a line-by-line breakdown underneath, and — where it applies — a year-by-year schedule you can export to a spreadsheet. Everything runs in your browser; nothing is stored or sent anywhere. Treat the output as a planning estimate, not as final word on a real decision.
The Formula
Future value of an ordinary annuity = payment × ((1 + r)^n − 1) / r, where r is the rate per period and n is the number of payments. Present value discounts that future amount back to today at the same rate.
Worked Example
Contributing $500 a month at a 5% annual return for 20 years grows to about $205,000. The present value of that stream is roughly $76,000 — what it would take to fund it today at the same return.
Tips for the Most Accurate Estimate
- More frequent contributions compound slightly faster.
- Use annuities to model both saving and drawing retirement income.
- Compare the future value to a lump-sum plan for context.
- Remember taxes may apply to withdrawals in taxable accounts.
- Annuity-due (payments upfront) yields a bit more than ordinary annuity.
Frequently Asked Questions
Q: What is an annuity?
A series of equal payments at regular intervals. It can be a savings stream (you pay in) or a payout stream (you receive income).
Q: Future vs present value — which do I need?
Use future value to see what contributions become, and present value to know what a future income stream is worth today.
Q: Does this include fees or taxes?
No. It models the raw math; subtract expected fees and taxes for a realistic figure.