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Annuity Calculator

Calculate the future value of an annuity from principal, contributions, rate, and term — ordinary or due, with year-by-year growth.

Starting principal ($)

Regular contribution ($)

Annual interest rate (%)

Years to grow

Contribution & compounding frequency

Contribution timing

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Everyday Uses

Growth projections

See what regular contributions grow to over decades with compound returns.

Product evaluation

Check an annuity offer's projected value against simply investing the same contributions.

Goal funding

Find the contribution needed to reach a target amount by a target date.

Year-by-year visibility

Watch the growth schedule to see when compounding really starts working.

Guarantee against flexibility

A guaranteed income removes market risk and also removes the option to change your mind later. That trade, rather than the headline rate, is usually the real decision.

Level or inflation-linked

A level income looks higher on day one and buys noticeably less after twenty years. Comparing the two curves matters far more than comparing the opening figures.

Frequently Asked Questions

What is an annuity and how does it grow?

An annuity is a series of equal payments made at regular intervals — monthly deposits into a savings plan, retirement contributions, or insurance payouts. During the accumulation phase, each contribution earns compound interest, so the future value FV = PMT × [((1+i)ⁿ − 1) / i], where i is the periodic rate and n the number of periods. A $500 monthly contribution at 6% for 20 years grows to about $231,000 from $120,000 contributed.

What is the difference between an ordinary annuity and an annuity due?

In an ordinary annuity, payments occur at the end of each period; in an annuity due, at the beginning. Because each payment in an annuity due earns interest for one extra period, its future value is higher by a factor of (1 + i). Rent is typically an annuity due (paid in advance); loan payments and most savings plans are ordinary annuities.

How does compounding frequency affect an annuity?

More frequent compounding grows money slightly faster at the same nominal rate. $10,000 at 6% for 20 years becomes $32,071 compounded annually versus $33,102 compounded monthly. The effect is modest but real — what matters far more is the contribution amount, the rate, and above all the time invested, because compound growth accelerates in later years.

What is the difference between a fixed and variable annuity?

A fixed annuity guarantees a set interest rate and predictable payments — lower risk, lower growth potential. A variable annuity invests contributions in market funds, so its value fluctuates with performance. Indexed annuities sit in between, crediting interest linked to a market index with caps and floors. Fees, surrender charges, and guarantees vary significantly — compare carefully before purchasing.

How to calculate an annuity

A regular contribution compounding at a fixed rate: future value = P × (1 + i)^n + payment × (((1 + i)^n − 1) ÷ i), where i is the periodic rate and n the number of periods. Contributions at the start of each period earn one extra period of growth.

Annuity examples

$10,000 start, $500/mo, 6%, 10 years: $100,134You put in $70,000; growth supplied the other $30,134.
Same, 20 years: $264,122Doubling the term more than doubles the result — that is compounding.

What the projection assumes

A constant return, every contribution made on time, and no fees, tax or inflation. Real returns vary year to year and the order they arrive in matters. Treat the figure as a shape, not a promise, and take advice before buying an annuity product.