The Annuity Calculator is a free tool that helps you calculate annuity using the formula FV = PMT x ((1+r)^n - 1)/r; PV = PMT x (1-(1+r)^-n)/r. Enter your values above and press Calculate to get future value, present value instantly, with a full step-by-step breakdown.
What is the Annuity Calculator?
The annuity calculator is a free online tool that helps you calculate annuity quickly and accurately. It applies the standard formula FV = PMT x ((1+r)^n - 1)/r; PV = PMT x (1-(1+r)^-n)/r to the values you enter and, when you press Calculate, displays the result together with a clear, step-by-step explanation of how the answer was reached.
Also known as: annuity formula.
How to use the Annuity Calculator
- Enter the periodic payment.
- Enter the rate per period.
- Enter the number of periods.
- See FV and PV.
Formula used
The annuity calculator is based on this formula:
FV = PMT x ((1+r)^n - 1)/r; PV = PMT x (1-(1+r)^-n)/rEach term in the formula corresponds to one of the inputs explained below. The calculator performs the arithmetic for you and shows every step so you can check the working by hand if you wish.
Worked example
Suppose you enter 10000, 8%, 10. The calculator works as follows:
| Inputs | 10000, 8%, 10 |
|---|---|
| Working | ordinary annuity |
| Result | FV about 144866 |
Step-by-step calculation
- Apply the formula:
FV = PMT x ((1+r)^n - 1)/r; PV = PMT x (1-(1+r)^-n)/r - Substitute your values: ordinary annuity
- Read the result: FV about 144866
Inputs explained
- Payment per period — the payment per period used in the calculation.
- Rate per period (%) — the rate per period used in the calculation.
- Number of periods — the number of periods used in the calculation.
Understanding your result
- Future value — the calculated future value.
- Present value — the calculated present value.
Benefits and practical uses
The annuity calculator saves time and removes the risk of manual errors when you need to calculate annuity. It is useful for students, professionals and anyone who wants a fast, dependable answer. Results update the moment you press Calculate, work on any device, and can be copied or shared in a single click — and because the maths runs in your browser, your figures stay completely private.
Tips for an accurate result
- Keep all related inputs in the same units.
- Use the worked example above to confirm you are entering values in the right places.
- Review the assumptions below so the result fits your situation.
- Press Reset to clear everything and try a different scenario.
Common mistakes to avoid
- Entering values in the wrong unit (mismatched units give wrong answers).
- Leaving a required field empty — the calculator will ask you to fill it in.
- Confusing the annual rate with a monthly rate, or tenure in years with months.
- Treating the estimate as a guaranteed return — markets and rates vary.
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).
How do I use the Annuity Calculator?
Enter your values in the fields, then press the Calculate button to see the result. Use Reset to clear the form and start again. Nothing is calculated until you click Calculate.
What formula does the Annuity Calculator use?
It uses the standard formula: FV = PMT x ((1+r)^n - 1)/r; PV = PMT x (1-(1+r)^-n)/r. The full step-by-step working is shown with every result so you can verify it.
What information do I need to use the annuity calculator?
You need: payment per period, rate per period, number of periods. Sensible example values are pre-filled so you can see how it works.
Is the Annuity Calculator free to use?
Yes. Every DigiToolkit calculator is completely free, with no sign-up, no login and no usage limits.
Does the Annuity Calculator work on mobile phones?
Yes. The calculator is mobile-first and works on phones, tablets and computers in any modern browser.
Do I need to install an app?
No. The annuity calculator runs directly in your web browser — there is nothing to download or install.
Is my data private when I use this calculator?
Yes. All calculations run inside your browser. The numbers you enter are never uploaded to a server or shared with anyone.
How accurate is the Annuity Calculator?
It uses the generally accepted formula for annuity and computes to several decimal places. Results are accurate for the assumptions listed on this page.
Can I copy or share my result?
Yes. After calculating, use the Copy button to copy the result, or Share to copy the page link.
Why is nothing showing until I press Calculate?
By design, the calculator only computes when you press Calculate, so you can finish entering all your values first. Press Reset any time to clear everything.
What units does the Annuity Calculator use?
It works with %. Keep your inputs in consistent units for an accurate result.