Annuity Calculator
Calculate annuity payments, future value, and present value.
Plan your retirement income with fixed or growing annuity calculations.
Annuity Results
Annuity calculations determine either how much you’ll accumulate (future value) or how much income you’ll receive (payout).
Future Value (accumulation phase):
FV = PMT × [(1+r)^n - 1] / r
Present Value (how much a stream of payments is worth today):
PV = PMT × [1 - (1+r)^(-n)] / r
Payout (converting a lump sum to monthly income):
PMT = PV × r / [1 - (1+r)^(-n)]
Where:
- PMT = Payment amount per period
- r = Interest rate per period
- n = Number of periods
- FV/PV = Future/Present value
Example: $500,000 annuity at 5% paying out over 20 years:
- Monthly payout = $3,299.78
- Total received = $791,946
- Interest earned during payout = $291,946
Tips:
- Annuities provide guaranteed income, which is valuable in retirement
- Compare the annuity rate to other fixed-income investments
- Consider inflation — a fixed annuity loses purchasing power over time