Financial · Live
Turn regular payments
into future wealth.
Our free annuity calculator shows the future value of your fixed-rate annuity, including a year-by-year growth chart, total interest earned, and a full payment schedule, all updating in real time.
Inputs
Build your annuity
Annuity type
Ordinary: payments at end of each period. Due: payments at the beginning — worth slightly more.
Future value
after 20 yrs
Growth chart
Year by year
Schedule
Year-by-year breakdown
| Year | Start | Paid in | Interest | End balance |
|---|---|---|---|---|
| Y1 | $0.00 | $6,000.00 | $139.43 | $6,139.43 |
| Y2 | $6,139.43 | $6,000.00 | $453.53 | $12,592.96 |
| Y3 | $12,592.96 | $6,000.00 | $783.71 | $19,376.67 |
| Y4 | $19,376.67 | $6,000.00 | $1,130.77 | $26,507.44 |
| Y5 | $26,507.44 | $6,000.00 | $1,495.60 | $34,003.04 |
| Y6 | $34,003.04 | $6,000.00 | $1,879.09 | $41,882.13 |
| Y7 | $41,882.13 | $6,000.00 | $2,282.20 | $50,164.33 |
| Y8 | $50,164.33 | $6,000.00 | $2,705.93 | $58,870.26 |
| Y9 | $58,870.26 | $6,000.00 | $3,151.34 | $68,021.60 |
| Y10 | $68,021.60 | $6,000.00 | $3,619.54 | $77,641.14 |
| Y11 | $77,641.14 | $6,000.00 | $4,111.70 | $87,752.84 |
| Y12 | $87,752.84 | $6,000.00 | $4,629.03 | $98,381.86 |
| Y13 | $98,381.86 | $6,000.00 | $5,172.83 | $109,554.70 |
| Y14 | $109,554.70 | $6,000.00 | $5,744.45 | $121,299.15 |
| Y15 | $121,299.15 | $6,000.00 | $6,345.32 | $133,644.47 |
| Y16 | $133,644.47 | $6,000.00 | $6,976.93 | $146,621.40 |
| Y17 | $146,621.40 | $6,000.00 | $7,640.86 | $160,262.26 |
| Y18 | $160,262.26 | $6,000.00 | $8,338.75 | $174,601.01 |
| Y19 | $174,601.01 | $6,000.00 | $9,072.35 | $189,673.36 |
| Y20 | $189,673.36 | $6,000.00 | $9,843.48 | $205,516.83 |
Field guide
How annuities grow and why they work.
What is an annuity?
An annuity is a series of equal, regular payments made or received over a fixed period. In personal finance, the term most often describes a savings or investment product where you contribute a set amount each period — monthly, quarterly, or annually and earn a fixed interest rate on the growing balance. Insurance companies sell annuity contracts for retirement income, but the same mathematics applies to any disciplined savings plan with a predictable rate of return.
This calculator focuses on the accumulation phase: how much your annuity will be worth at the end of the term. Enter your initial deposit, regular payment, interest rate, and number of years, and the future value appears instantly.
The future value formula
For an ordinary annuity (payments at the end of each period), the future value of the periodic payments alone is:
Where PMT is the payment per period, r is the periodic interest rate (annual rate ÷ payments per year), and n is the total number of periods. If you also start with an initial lump sum P, that amount compounds independently:
This is the same mathematics behind the HP‑12C financial calculator, Excel's FV() function, and every annuity illustration you'll receive from an insurance carrier.
Ordinary annuity vs. annuity due
The distinction comes down to when each payment is credited:
- Ordinary annuity: payments arrive at the end of each period. Most savings accounts, mortgage payments, and bond coupons follow this convention.
- Annuity due: payments arrive at the beginning of each period. Rent and lease agreements typically work this way. Because each payment earns one extra period of interest, an annuity due is always worth more than an otherwise identical ordinary annuity by a factor of
(1 + r).
Over 20 years at 5% with $500 monthly payments, an annuity due produces roughly $850 more than an ordinary annuity, a small but real advantage that compounds over time.
How payment frequency affects growth
Switching from annual to monthly payments accelerates growth in two ways. First, money enters the account earlier and starts earning interest sooner. Second, compounding happens more often, so each dollar earns interest on interest across more sub-periods per year. A $6,000 annual payment invested at 5% grows more slowly than twelve $500 monthly payments at the same annual rate, the difference is the "frequency dividend" of compounding.
Worked example
Suppose you open a fixed-rate annuity with no initial deposit, contribute $500 per month, earn 5% per year, and let it run for 20 years:
- Total paid in: $500 × 12 × 20 = $120,000
- Future value (ordinary annuity): roughly $205,517
- Interest earned: roughly $85,517
More than 40% of the final balance came from compound interest — money you never had to earn or save yourself. Extend the term to 30 years at the same rate and the interest portion climbs past 55%, overtaking total contributions as the bigger driver of wealth.
What this calculator doesn't model
This tool assumes a fixed interest rate throughout the entire term. Real annuity contracts may have a guaranteed rate for only a set period (e.g., three to seven years), after which the rate resets. Variable annuities link returns to market sub-accounts and can rise or fall. Taxes on gains, surrender charges, mortality and expense fees, and inflation are also outside the scope of this projection. For a complete picture, pair this tool with our inflation calculator to see your future balance in today's purchasing power.
Disclaimer
For educational and planning purposes only. This is not investment, tax, or insurance advice. Consult a licensed financial advisor or insurance professional before purchasing or surrendering any annuity product.