Annuity Calculator

An annuity is a series of fixed payments made at regular intervals — often used for saving money, investing, or receiving guaranteed income during retirement. Our Annuity Calculator helps you estimate the future value of your investments or regular contributions, showing how your money grows with interest over time.

You can use this calculator to find out:

• How much your investment will be worth after a set number of years.
• The total amount of money you contributed.
• The total interest earned from compounding growth.

It’s a simple way to visualize how consistent savings and compounding interest can help you reach long-term financial goals.

How the Annuity Calculator Works

When you enter an initial deposit, interest rate, payment frequency (monthly, quarterly, annually), and time period, the calculator computes the future value of your annuity.

Each contribution earns interest based on how often it compounds. Over time, your balance grows not only from new contributions but also from the accumulated interest — this is the power of compound growth.

Our calculator supports both:

• Ordinary Annuity (End of Period): Payments are made at the end of each period.
• Annuity Due (Beginning of Period): Payments are made at the start of each period, resulting in slightly more total interest due to extra compounding.

Understanding Annuities

Annuities generally come in two phases:

1. Accumulation Phase

This is the period when you make regular deposits into your annuity account. Your money earns interest, and your balance grows over time. For example, you might invest $500 per month for 20 years at a 6% annual return.

2. Payout Phase

This phase begins when you start receiving payments from the annuity. It’s common during retirement — your accumulated balance is converted into a steady income stream that lasts for a specific term or even your lifetime.

Types of Annuities

There are several types of annuities depending on how they grow and pay out:

• Fixed Annuity: Offers a guaranteed interest rate and predictable payments.
• Variable Annuity: Returns fluctuate based on investment performance.
• Immediate Annuity: Begins paying income shortly after you make a lump-sum investment.
• Deferred Annuity: Accumulates funds over time, with payouts starting at a future date.

Our calculator focuses on accumulation-phase annuities, showing how regular contributions and compounding build future value

Benefits of Using the Annuity Calculator

• Estimate future value of your retirement or investment plan.
• Compare different contribution amounts, time periods, or rates of return.
• Understand how compounding frequency impacts growth.
• Visualize your balance year by year with an amortization-like schedule.

By adjusting your inputs, you can instantly see how small changes — like increasing your monthly contribution or investing for longer — dramatically affect your total savings.

Key Insights

• The earlier you start saving, the greater the benefit from compounding.
• Contributing at the beginning of each period (annuity due) yields higher returns than end-of-period contributions.
• Longer investment durations exponentially increase growth due to compound interest.

Example

If you invest $200 per month for 25 years at an annual interest rate of 6%, your total contributions will be $60,000. With compounding, your future value could exceed $116,000, meaning you earn over $56,000 in interest — nearly doubling your investment.

Disclaimer

This calculator is designed for educational purposes and provides approximate results. Actual returns depend on investment performance, fees, taxes, and other factors. Always consult a qualified financial advisor before making major financial decisions.