Annuity Calculator: Future Value, Present Value & Payout

Use an annuity payout calculator for planned withdrawals, or compare future value and present value for a recurring payment stream. Choose ordinary annuity or annuity due timing and see the result with a yearly schedule.

Core annuity formula
FV = PV × (1 + r)ⁿ + PMT × annuity factor; payout PMT = PV ÷ present-value factor

Annuity Calculator

FV + PV + payout
Use future value for accumulation, payout for a planned withdrawal, or present value for the amount needed today.
$
Use the opening balance for future value or payout mode. In present-value mode, the calculator solves this amount for you.
$
Use deposits in future-value mode or the desired withdrawal in present-value mode. Payout mode calculates this field.
%
Enter a nominal annual rate as a percentage, such as 5.5 for 5.5%.
The number of years in the payment stream.
An annuity due applies each payment one period earlier, which changes the result.
Annuity calculation result
Enter values and calculate to see the annuity result.
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Enter values and calculate to see the annuity result.

Starting amount / PV
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The opening value of the payment stream.
Periodic payment
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The deposit or payout per selected period.
Total scheduled payments
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The periodic payment multiplied by the number of periods.
Interest earned / cost
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Growth above contributions or the cost above present value.

Annuity Calculator Examples

Load a hypothetical scenario to compare accumulation, planned payouts, and the present value of recurring payments. These examples are mathematical illustrations, not insurance quotes.

Future value of an annuity: $100,000 plus $500 monthly

Estimate future value when an opening balance grows alongside regular monthly contributions.

Annuity payout calculator: $250,000 balance

Estimate the monthly payment that would draw down a balance over 20 years.

Present value of an annuity: $1,500 monthly stream

Estimate how much that payment stream is worth today when payments start immediately.

Lottery annuity calculator illustration: 25-year payout

Use a simple long-term annual payout example without assuming taxes, fees, or a lottery contract.

Year-by-Year Annuity Schedule

Review how payments and interest change the balance each year. The schedule uses the same frequency and payment timing selected above.

Year Starting balance Payments Interest Ending balance

Annuity Calculator Formula: FV, PV and Payout

The annuity calculator uses standard time-value-of-money formulas and shows the assumptions that drive each result.

Future value of an annuity

FV = PV × (1 + r)ⁿ + PMT × [((1 + r)ⁿ − 1) ÷ r]

PV is the starting amount, PMT is the periodic payment, r is the rate per period, and n is the total number of periods. Annuity-due payments are multiplied by (1 + r).

Present value of an annuity

PV = PMT × [1 − (1 + r)⁻ⁿ] ÷ r

This estimates the amount needed today to support a fixed payment stream. The result changes when payments begin immediately instead of at the end of a period.

Required annuity payout

PMT = PV ÷ present-value factor

Payout mode solves the periodic payment that amortizes the starting balance over the selected term and interest rate.

Zero-interest edge case

Factor = n when r = 0

When the rate is zero, the calculator avoids dividing by zero and treats the payment stream as a straight total of the periods.

How to Use the Annuity Calculator

Choose the calculation that matches your question, then change the timing or frequency to test a realistic payment schedule.

1

Choose a mode

Use future value for growth, required payout for withdrawals from a balance, or present value for the value of a recurring payment stream.

2

Enter the cash flow

Add a starting balance for growth or payout mode. Enter a periodic payment for growth or present-value mode.

3

Set rate and term

Use the annual rate and number of years from your planning scenario. The calculator converts them into per-period values.

4

Choose timing and frequency

Select monthly, quarterly, or annual payments and decide whether each payment occurs at the beginning or end of the period.

5

Review the schedule

Check the primary result, total payments, interest, and yearly balance schedule before comparing another scenario.

Ordinary Annuity vs. Annuity Due

Payment timing can change the result even when the rate, term, and payment amount stay the same.

Type Payment timing Typical use Effect on result
Ordinary annuity End of each period Most loan-style or end-of-month payment streams Interest is earned before the next payment is added.
Annuity due Beginning of each period Rent, leases, or income that starts immediately Each payment has one extra period of compounding or reduces the balance earlier.
Present-value mode Depends on timing choice Comparing a future payment stream with money today Shows the current value rather than the ending balance.
Payout mode Depends on timing choice Estimating a fixed drawdown from a balance Solves the periodic payment that reaches approximately zero at the end of the term.

Assumptions and Limitations

Use the result for planning and comparison. A mathematical annuity estimate is not an insurance quote or a guarantee of income.

Taxes and fees are not included

Actual annuity products can include taxes, commissions, rider fees, surrender charges, administrative costs, and other contract terms.

Returns may not be fixed

The model assumes the annual rate you enter stays constant. Variable, indexed, and market-linked products can produce different results.

Inflation changes purchasing power

The displayed result is nominal. It does not show what the future payment or balance will buy after inflation.

Insurance contracts are product-specific

Immediate and deferred annuities can have guarantees, risks, liquidity limits, and insurer obligations that this calculator does not model.

Annuity Calculator FAQ

Answers to common questions about future value, present value, payout calculations, and payment timing.

It estimates the value of equal payments made at regular intervals. This page can calculate a future value, the present value of a payment stream, or the periodic payout needed to draw down a balance.

Future-value mode starts with a balance and deposits to estimate how much may accumulate. Payout mode starts with a balance and solves the regular withdrawal that would use it over the selected term.

Enter the payment, annual rate, term, frequency, and timing, then choose Present value of an annuity. The calculator discounts each future payment back to today using the selected rate.

Neither is automatically better. An annuity due pays at the beginning of each period, while an ordinary annuity pays at the end. The correct choice depends on when the real cash flow occurs.

You can use it for a simple mathematical payout illustration by entering a starting amount, term, rate, and annual frequency. It does not model lottery rules, taxes, legal claims, discount rates, or a specific prize contract.

No. The result is a nominal estimate using the rate you enter. Add your own fee and inflation assumptions separately, and read the actual product disclosure before making a financial decision.

Identify the present value, payment, rate per period, number of periods, and payment timing. Use the same timing convention for every input, then verify the result against the cash-flow schedule.

Convert the annual rate to a rate per payment period, calculate the number of periods, and apply PV = PMT × [1 − (1 + r)⁻ⁿ] ÷ r. If the rate is zero, present value is the payment multiplied by the number of periods.

Enter the starting balance, periodic payment, annual rate, years, payment frequency, and whether payments occur at the beginning or end of each period. Then choose future value, present value, or payout mode to match your question.

Definitions and Further Reading

Use official investor education material to understand how real annuity contracts can differ from a simple time-value-of-money calculation.

Investor.gov: Annuities

SEC investor education explains common annuity types, features, benefits, risks, and questions to ask before buying a contract.

https://www.investor.gov/introduction-investing/investing-basics/investment-products/insurance-products/annuities

Compare the cash flow before you commit

Change the rate, term, timing, and payment frequency to see which assumption has the largest effect on the annuity result.

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