Annuity Calculator
Calculate the present and future value of any annuity payment stream.
Annuity inputs
Model recurring payments, interest, and timing in one place.
Currency
Recurring payment each period.
Used as the rate per period in this calculator.
Total recurring payments.
Present value (PV)
£1,246,221.03
What this payment stream is worth today.
Future value (FV)
£3,306,595.41
What recurring payments could grow into.
Total payments
£2,000,000.00
£100,000.00 × 20 periods
Interest earned
£1,306,595.41
Future value minus total payments.
Payment timing
End
Ordinary annuity
Growth multiple
1.65×
Future value divided by payments.
Support
Finance support layer
Formula verified
Uses standard present value and future value formulas for ordinary annuity and annuity due calculations.
Estimate only
Results are educational estimates and do not include taxes, inflation, investment fees, or changing payment amounts.
Planning focused
Use the results to compare payment streams, savings goals, income options, and long-term value assumptions.
Interpretation
What these annuity results mean
Future value projection
At 5% over 20 periods, £100,000.00 payments grow to approximately £3,306,595.41.
Growth multiple
Your future value is about 1.65× your total payments, before taxes, fees, and inflation.
Timing advantage
Switching to annuity due would increase value because payments start compounding one period earlier.
Rate sensitivity
Small interest-rate changes can significantly affect long-term annuity value, especially when the period count is high.
Annuity basics
How annuities work
Recurring payments
An annuity is built from equal payments made on a steady schedule, such as yearly deposits or monthly income.
Interest compounding
Each payment can earn interest, and earlier payments usually have more time to grow.
Time value of money
Money today and money later are not equal when interest, inflation, and opportunity cost matter.
Planning value
Annuity math helps compare savings plans, pension streams, settlement offers, and retirement income.
Assumptions matter
Results depend on payment timing, rate, period count, taxes, fees, and whether payments change over time.
Payment timing
Ordinary annuity vs annuity due
Ordinary annuity
End of period
Payments happen after each period ends.
Annuity due
Beginning of period
Payments happen before each period begins.
PV vs FV
Present value vs future value
Present value
Present value estimates what future recurring payments are worth today.
Future value
Future value estimates what recurring deposits may grow into.
Formula
Annuity formula explanation
Future value
FV = PMT × [((1 + r)^n − 1) / r]Future value shows what recurring payments grow into after compounding.
Present value
PV = PMT × [(1 − (1 + r)^−n) / r]Present value discounts future payments back to what they are worth today.
Annuity due
Ordinary annuity result × (1 + r)Beginning-of-period payments compound for one extra period.
FAQ
Annuity calculator questions
An annuity is a stream of equal payments made at regular intervals.