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