Annuity Calculator

Calculate annuity payments, present value, and future value. Analyze retirement income, loan payments, and investment growth with different annuity types.

Annuity Calculation

Load Example:

Calculate present value from payment amount

Payments made at the end of each period

Annuity Results

Enter annuity details to calculate values

Annuity Types & Applications

Annuity Types

Ordinary Annuity
Payments at end of each period (most common)
Annuity Due
Payments at beginning of each period
Fixed Annuity
Guaranteed payments for life
Variable Annuity
Payments based on investment performance

Common Applications

  • Retirement Planning: Calculate retirement income needs
  • Loan Payments: Mortgage and car loan calculations
  • Investment Analysis: Evaluate investment opportunities
  • Insurance: Life insurance and annuity products
  • Business Valuation: DCF and valuation models
  • Lease Payments: Equipment and property leases

How to Use This Calculator

Step-by-Step Guide

  1. 1. Select the calculation type you need
  2. 2. Choose between ordinary annuity or annuity due
  3. 3. Enter the interest rate and number of years
  4. 4. Input payment amount or present value
  5. 5. Click "Calculate Annuity" to see results
  6. 6. Review the comprehensive breakdown

Understanding Results

  • Present Value: Current worth of future payments
  • Future Value: Total value at end of period
  • Payment Amount: Regular payment amount
  • Total Interest: Interest earned over time
  • Payment Schedule: Payment frequency and total

Frequently Asked Questions

What's the difference between ordinary annuity and annuity due?

Ordinary annuity payments are made at the end of each period (like mortgage payments), while annuity due payments are made at the beginning of each period (like rent payments). Annuity due has higher present and future values because payments are received earlier and can earn interest longer.

How do I choose the right annuity for retirement?

Consider your risk tolerance, income needs, and life expectancy. Fixed annuities provide guaranteed income but lower returns, while variable annuities offer growth potential with market risk. Use this calculator to compare different scenarios and determine how much you need to save for your desired retirement income.

Can I use this calculator for loan payments?

Yes, this calculator works for loan payments. Use "Payment Amount" calculation type with the loan amount as present value. The result shows your monthly payment. This is useful for mortgages, car loans, personal loans, and other installment loans.

What factors affect annuity calculations?

Key factors include interest rate (higher rates increase future value), payment frequency (monthly vs. annual), payment timing (ordinary vs. due), and time period (longer periods increase compound growth). Small changes in interest rates can significantly impact long-term annuity values.