Annuity Calculator
Solve for any annuity variable — payment, present value, future value, term, or interest rate — using standard time-value-of-money formulas.
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How to use this calculator
PMT = periodic payment, r = periodic interest rate, n = number of periods. Rearrange to solve for whichever variable is unknown.
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Select what you want to solve for: payment, present value, future value, term, or rate.
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Fill in the known values — the field corresponding to your chosen mode is the unknown.
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The calculator displays the solved value along with a summary of total paid and interest.
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Switch modes to explore different scenarios: e.g. find the rate your annuity earns, or the term needed.
Frequently asked questions
What is an ordinary annuity vs an annuity due?
An ordinary annuity makes payments at the end of each period (most loans and bonds). An annuity due makes payments at the beginning (most leases and some insurance). This calculator uses the ordinary annuity convention. For annuity due, multiply the resulting payment by 1/(1+r) to convert.
How do I find the present value of a pension or structured settlement?
Use "Solve for PV." Enter the regular payment amount, the number of payments, and the discount rate (a rate reflecting what the money could earn elsewhere). The PV is the lump sum equivalent of all future payments in today's dollars.
What discount rate should I use for PV calculations?
Use the rate of return you could earn on an alternative investment of similar risk — your opportunity cost. For safe investments, use current treasury or CD rates (4–5%). For retirement planning, a 5–7% real return is common. For business, use your weighted average cost of capital (WACC).
Can this calculator handle growing annuities?
This calculator assumes constant (level) payments. For a growing annuity (payments increasing at a fixed rate each period), the formula changes to PMT/(r−g) × [1−((1+g)/(1+r))^n]. Use a spreadsheet for growing annuity calculations.
Annuity calculations: present value, future value, and payment
Time value of money fundamentals
A dollar today is worth more than a dollar in the future because it can be invested and earn returns. The present value (PV) of a future stream of payments discounts those payments back to today. Future value (FV) compounds today's money forward. Annuity formulas apply these concepts to regular periodic payments.
Retirement income annuities
Insurance companies sell annuity products where you pay a lump sum (the PV) and receive regular monthly income (the PMT) for a fixed term or for life. To evaluate a quote: use the PV solver with the quoted payment, term, and an appropriate discount rate. If the PV the insurer charges is close to the formula result, the pricing is fair. Higher charges mean lower returns for you.
Loan amortization is an annuity
Any fixed-payment loan — mortgage, car loan, personal loan — is an ordinary annuity from the lender's perspective. The loan amount is the PV, the monthly payment is PMT, and the interest rate and term determine the relationship. That is why the same formula that prices bonds also prices mortgages.
Learn more from an authoritative source:
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →