Calculate the present or future value of an ordinary annuity or annuity due from payment amount, rate, and term.
Solve for
Annuity type
Display currency
Switch the display currency used for the annuity payment and lump-sum equivalents without changing the rate assumptions.
Result
Future value of the selected ordinary annuity if the payment stream continues for 15 years.
Annuity assumptions
Effective annual rate: 5.12%. Annuity due assumes each payment arrives one period earlier than an ordinary annuity, which increases both present and future value.
Year-by-year accumulation
| Year | Balance | Payments | Growth |
|---|---|---|---|
| 1 | $12,278.86 | $12,000.00 | $278.86 |
| 2 | $25,185.92 | $24,000.00 | $1,185.92 |
| 3 | $38,753.34 | $36,000.00 | $2,753.34 |
| 4 | $53,014.89 | $48,000.00 | $5,014.89 |
| 5 | $68,006.08 | $60,000.00 | $8,006.08 |
| 6 | $83,764.26 | $72,000.00 | $11,764.26 |
| 7 | $100,328.65 | $84,000.00 | $16,328.65 |
| 8 | $117,740.51 | $96,000.00 | $21,740.51 |
| 9 | $136,043.20 | $108,000.00 | $28,043.20 |
| 10 | $155,282.28 | $120,000.00 | $35,282.28 |
| 11 | $175,505.67 | $132,000.00 | $43,505.67 |
| 12 | $196,763.73 | $144,000.00 | $52,763.73 |
| 13 | $219,109.39 | $156,000.00 | $63,109.39 |
| 14 | $242,598.30 | $168,000.00 | $74,598.30 |
| 15 | $267,288.94 | $180,000.00 | $87,288.94 |
How to use this result
Use the annuity value to compare a regular payment stream with a lump sum under one steady-rate model. It does not account for inflation-linked payments, taxes, fees, or changing returns unless you model those separately.
Also in Saving & Investing
Income Stream Maths
An annuity calculator estimates the present value or future value of a level payment stream over time. It helps compare ordinary annuities with annuity due, making it easier to value regular payments in retirement planning, insurance-style income scenarios, and general time-value-of-money analysis.
An annuity is a stream of equal payments made at regular intervals. The two most common questions are what that stream is worth today as a lump sum and what it could accumulate to by the end of the term if payments continue and compound.
That is why this calculator offers both present-value and future-value modes. One answers the lump-sum-equivalent question, while the other answers the accumulation question from the same payment stream.
An ordinary annuity assumes each payment arrives at the end of the period. An annuity due assumes each payment arrives at the beginning. Because the money arrives earlier in an annuity due, both present value and future value are higher than for an otherwise identical ordinary annuity.
This timing difference matters in real planning. Rent, insurance premiums, and some retirement-income scenarios are often beginning-of-period cash flows, while loan-style or pension-style schedules are often end-of-period cash flows.
FV of ordinary annuity = PMT x (((1 + i)^n - 1) / i)
Compounds equal end-of-period payments PMT over n periods at periodic rate i.
PV of ordinary annuity = PMT x (1 - (1 + i)^(-n)) / i
Discounts equal end-of-period payments back to a lump-sum present value.
Annuity due value = Ordinary annuity value x (1 + i)
Raises both present and future value when each payment arrives one period earlier.
Suppose a payment stream is 1,000 each month for 15 years at a 5% annual rate with monthly compounding. In future-value mode, the calculator estimates what that stream could accumulate to by the end of the term. In present-value mode, it estimates the lump sum today that would be financially equivalent under the same assumptions.
Switching from ordinary annuity to annuity due lifts both values because every payment gets one extra period of growth or one less period of discounting. That is why payment timing should not be treated as a minor detail when you are comparing cash-flow options.
This calculator assumes a level payment amount and one constant annual rate for the whole schedule. It does not model inflation-linked payments, insurer pricing, mortality credits, surrender charges, taxes, changing yields, or irregular income streams.
Use it as a clean educational annuity model. If you are reviewing a specific product, pension option, or settlement offer, compare this estimate with the official disclosure materials and independent professional advice.
Further reading
Frequently asked questions
Present value estimates the lump sum today that is financially equivalent to the future payment stream. Future value estimates what the payment stream could grow to by the end of the term if it compounds at the chosen rate.
Because each payment arrives one period earlier. Earlier cash flows either compound for longer in future-value mode or are discounted for fewer periods in present-value mode, so the value rises.
Yes, as a first-pass educational estimate for level payment streams. But retirement products and pension options often involve inflation adjustments, fees, survivor benefits, taxes, or insurer assumptions that this simplified model does not include.
No. It assumes equal payments on a fixed schedule. If payments step up, change with inflation, or vary across time, the correct valuation needs a more detailed discounted-cash-flow model.
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