Annuity Calculator
Calculate the future value of regular payments, the present value of an annuity, or the monthly payout you could receive from a lump sum.
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About the Annuity Calculator
An annuity is a series of equal payments made at regular intervals. This calculator handles three common questions: how much regular deposits will grow to (future value), what a stream of payments is worth today (present value), and how much monthly income a lump sum can provide. Choose ordinary timing for payments at the end of each month or annuity due for payments at the start.
How to use it
- Choose future value, present value or monthly payout.
- Enter the payment or lump sum, the annual return and the number of years.
- Pick the payment timing and press Calculate annuity.
Annuity formulas
- Future value (ordinary) = PMT × [((1 + r)n − 1) ÷ r]
- Present value (ordinary) = PMT × [(1 − (1 + r)−n) ÷ r]
- Annuity due multiplies the ordinary result by (1 + r).
- r is the monthly rate (annual rate ÷ 12) and n is the number of months.
Example
Depositing $500 a month for 20 years at 5% grows to about $205,500, of which $120,000 is your own money. A $200,000 lump sum at 5% over 20 years could pay about $1,320 a month.
Frequently asked questions
What is an annuity?
A series of equal payments over time. It can also mean an insurance product that pays you income in retirement.
Ordinary annuity or annuity due?
An ordinary annuity pays at the end of each period, like most loans. An annuity due pays at the start, like rent, and is worth slightly more.
How do I calculate monthly annuity income?
Choose Monthly payout, enter your lump sum, the expected return and the number of years. The tool finds the level payment that uses up the balance at the end.
Is this a quote for an insurance annuity?
No. Insurers use mortality tables, fees and their own rates. Treat this as a mathematical estimate.
What return should I use?
Use a conservative rate that matches your investments or the quoted rate. Higher returns increase the projection but are never guaranteed.
Last reviewed: November 2026. Estimates only, not financial, tax or legal advice.