What is the Annuity Calculator?
The annuity calculator is a free online tool that helps you work out annuity quickly and accurately. It uses the standard formula FV = PMT x ((1+r)^n - 1)/r; PV = PMT x (1-(1+r)^-n)/r and shows the result instantly as you type, along with a full breakdown so you can see exactly how the answer was reached.
How to use this calculator
- Enter the periodic payment.
- Enter the rate per period.
- Enter the number of periods.
- See FV and PV.
Formula used
FV = PMT x ((1+r)^n - 1)/r; PV = PMT x (1-(1+r)^-n)/rExplanation of each input
- Payment per period โ the payment per period used in the calculation.
- Rate per period (%) โ the rate per period used in the calculation.
- Number of periods โ the number of periods used in the calculation.
Understanding your result
- Future value โ the calculated future value.
- Present value โ the calculated present value.
Step-by-step calculation
For the example values 10000, 8%, 10:
- Apply the formula:
FV = PMT x ((1+r)^n - 1)/r; PV = PMT x (1-(1+r)^-n)/r - Substitute the values: ordinary annuity
- Result: FV about 144866
Worked example
| Inputs | 10000, 8%, 10 |
|---|---|
| Working | ordinary annuity |
| Result | FV about 144866 |
Benefits and practical uses
This calculator saves you time and reduces errors when you need annuity. It is useful for students, professionals and anyone who wants a fast, reliable answer without manual calculation. Results update instantly, work in your browser and can be copied or shared in one click.
Assumptions and limitations
- Ordinary annuity; constant rate and payment.
Frequently asked questions
Ordinary annuity or annuity-due?
This uses an ordinary annuity (payments at period end).
Disclaimer: This calculator provides estimates for general information only and is not financial advice. Returns are illustrative and not guaranteed; consult a qualified financial adviser before making decisions.