Free Annuity Calculator
How it works
Pick what you want to solve for. In future-value mode, you enter a regular yearly payment and see what it grows into. In target mode, you enter the amount you want to end up with and the calculator works backwards to the yearly payment required. An optional starting principal can be included in both modes.
Annuity Calculator
Find what regular payments grow into — or the exact payment it takes to reach your target.
1 Choose what to solve for
2 Your numbers
3 Calculate
📅 Your annuity result
The formula
With annual compounding and one payment at the end of each year, the future value is FV = principal × (1 + r)^t + PMT × [((1 + r)^t − 1) / r], where r is the annual rate and t is the number of years. Target mode simply rearranges the same equation: PMT = (Target − principal × (1 + r)^t) × r / ((1 + r)^t − 1). When the rate is 0%, both collapse to simple addition — principal plus payment × years.
Everyday uses
- Retirement saving targets: work out the yearly amount you must set aside to reach a specific nest egg by a chosen age.
- College fund planning: set a target for 18 years from now and see the yearly payment that gets a newborn’s fund there.
- Comparing savings plans: check what a fixed yearly deposit becomes at different rates before committing to a product.
- Sinking funds: plan for a roof replacement, a car, or a big trip with a firm deadline and a known price tag.
Frequently asked questions
Is this the same as an insurance annuity?
Not exactly. This calculator models the math of an annuity — a series of equal payments growing at a fixed rate. Insurance annuities add fees, surrender charges, and guarantees on top of the same core math, so use this to understand the numbers before comparing actual products.
When are the payments assumed to happen?
At the end of each year (an “ordinary annuity”). Payments made at the start of each year would grow slightly more, because each payment gets one extra year of growth.
What happens if the rate is 0%?
The formulas switch to plain addition: future value is principal plus payment × years, and the required payment is the shortfall divided by the number of years. No division-by-zero tricks, just arithmetic.