About the Annuity Calculator
An annuity is a series of equal payments made at regular intervals. Savings plans, pensions, mortgages and some insurance products all work this way. This annuity calculator handles the four questions people ask most: what regular deposits will grow to, what a stream of payments is worth today, how much a lump sum can pay out each period, and what regular deposit is needed to reach a goal. It lets you choose monthly, quarterly, twice-yearly, weekly or yearly payments, and whether they happen at the end of each period (ordinary annuity) or at the start (annuity due).
Updated October 2026
How to use the Annuity Calculator
- 1Choose what you want to find.
- 2Enter the payment, lump sum or goal, depending on that choice.
- 3Enter the yearly interest rate and the number of years.
- 4Choose how often payments happen and whether at the start or end of the period.
- 5Read the answer and the totals shown beneath it.
Choosing the right question
- Saving up: use future value or the deposit needed for a goal.
- Valuing an income stream: use present value.
- Drawing down a pot of money: use payout from a lump sum.
- Comparing a lump sum with payments: convert both to present value.
A worked example
Suppose you want 100,000 in 20 years and expect 5 percent a year, paid monthly. The monthly rate is 5 divided by 12, about 0.4167 percent, and there are 240 payments. Choose the deposit-needed option and the calculator shows a deposit of about 243 a month, a total of 58,300 paid in, with the rest of the goal coming from interest. Lower returns would need larger deposits, so try a more cautious rate as well.
Related finance tools
The Future Value Calculator and Present Value Calculator cover single sums, the Compound Interest Calculator and Savings Goal Calculator show growth over time, the Retirement Calculator plans bigger goals, and the Loan Calculator treats a loan as an annuity you repay. Returns are never guaranteed and past performance does not predict the future.
Features
- Future value of regular deposits
- Present value of regular payments
- Payout a lump sum can fund
- Deposit needed to reach a goal
- Ordinary annuity or annuity due
- Weekly to yearly payments
- Runs in your browser
Frequently asked questions
What is an annuity?
An annuity is a stream of equal payments at regular intervals. Paying 500 a month into a savings plan for 20 years is an annuity of deposits, and receiving 1,500 a month from a pension is an annuity of payouts. The word describes the pattern, whether the money is coming in or going out.
What is the difference between an ordinary annuity and an annuity due?
In an ordinary annuity each payment is at the end of its period, like most loan payments. In an annuity due each payment is at the start, like rent or insurance. Because annuity due payments start earlier, they earn one extra period of interest and are worth more by a factor of one plus the periodic rate.
How is the future value of an annuity calculated?
Multiply the payment by ((1 plus r) raised to n, minus 1) divided by r, where r is the interest rate per period and n is the number of payments. Paying 100 a month at 6 percent a year for 10 years gives about 16,388. With a zero rate the formula is simply payment times n.
How do I work out an annuity payout from a lump sum?
Divide the lump sum by the present value factor, (1 minus (1 plus r) to the power minus n) divided by r. A lump sum of 100,000 earning 4 percent a year can pay about 606 a month for 20 years. The tool also shows the total paid out and the interest earned.
Does the calculator include tax or fees?
No. It uses the interest rate you enter and nothing else. Real products may have fees, tax and rates that change, so treat the result as an estimate for planning and comparison rather than a promise.
What does perpetuity mean?
A perpetuity is an annuity that never ends. Its present value is the yearly payment divided by the yearly interest rate. A payment of 6,000 a year at 5 percent is worth 120,000. The present value result shows this figure for comparison.