Future Value of Annuity Calculator

Get future values of annuity for upcoming dates with the help of this free online future value of annuity calculator.

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Payment Amount:

Interest rate:

Annuity term:

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Annuity term:

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Compounding frequency:

Payment frequency:

Type of Annuity:

Growth Rate (Optional):

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The future value of annuity calculator assists to provide the comprehensive values of annuity in the future dates. The future value of the annuity is computed at a regular interval which can be either monthly or yearly.

We can calculate the annuity payments, interest rates, and time periods desired. For understanding the terms it is essential to understand the concept of the annuity.

What is an annuity?

An annuity is a series of payments made at regular intervals of time periods. There are different examples of annuities like savings accounts, monthly mortgage payments, and pension payments. The future value of an annuity calculator is adjustable for finding the annuity for any time period regardless of whether we are calculating on a daily, monthly, or yearly basis.

The future value of an annuity can be made on a weekly, monthly, quarterly, and yearly basis. The future value of annuity calculator is a comprehensive measurement of annuity in the future dates. The interval can be based on the mutual understanding between the lending company and the customers.

Types of the annuities:

There are two types of annuities and we are going to discuss them one by one:

Ordinary annuity
Annuity due

Ordinary Annuity:

“When you make the payments at the end of each time interval then we call it the ordinary annuity”.

An ordinary annuity is a series of regular payments made at the end of each period, such as monthly or quarterly. We are using the ordinary annuity formula calculator for this type of annuity. The future value of annuity formula for ordinary annuity is as follows:

FV of Ordinary Annuity = C x [(1+i)^n – 1 / i)

Where:

C= Cash Flow Per Period

i= interest rate

n=number of payments

Example:

Now consider an example where cash flow per period is $1000, the interest rate is 5% and a number of periods for the ordinary annuity is 5 years time:

Then we get the following data:

C=$1000

i= 5%

n=5 years

Put the values of the ordinary annuity in the future value of annuity calculator.

FV of Ordinary Annuity = C x [(1+i)^n – 1 / i)

= $1000 x [(1+5%)^5 – 1 / 5%)

= $1000 x [(1+0.05)^5 – 1 / 0.05)

= $1000 x 5.53

= $ 5,525.64

Ordinary Annuity

The value calculated by the ordinary annuity calculator is $ 5,525.64 after 5 years and an interest rate of 5 %.

Annuity Due:

The annuity due is paid at the beginning rather than the end of each time period.

The future value of annuity formula for annuity due is as follows, we can find the annuity due by putting the values in the future value of annuity calculator:

FV of an Annuity Due = C x [(1+i)^n – 1 / i) x (1 + i)

Example:

Let us again suppose the example mentioned for an annuity due, We have cash flow per period is $ 1000, and we want to find the annuity due of the payments. The interest rate is 5% and the number of periods for the ordinary annuity is 5 years time:

Then we get the following data:

C=$1000

i= 5%

n=5 years

Inserting the values in the Future value of annuity formula for annuity due.

FV of an Annuity Due = C x [(1+i)^n – 1 / i) x (1 + i)

= $1000 x [(1+5%)^5 – 1 / 5%)x (1 + i)

= $1000 x [(1+0.05)^5 – 1 / 0.05)x (1 + 0.05)

= $1000 x 5.53x 1.05

= $ 5801.91

Annuity due

The value calculated by the annuity due calculator is $ 5801. 92 after 5 years and an interest rate of 5 %.

Terms involved in an annuity:

For understanding the future value of annuity we need to understand the preceding terms:

Period(n):

The time period between two intervals of an installment is called the future value of the annuity period. It can be yearly, monthly, or quarterly. It is denoted by the “n”.

Interest rate(i):

It is the annual rate of interest and it can be changed after a year. We can find it by dividing the interest rate by 100 as it is described as 5% or 6% etc. The future value of the annuity calculator automatically converts the values of “i” by dividing it by 100. We only have to add the values of “i” in the designated field.

Payment amount (C):

The amount paid for or the principal amount around which we are doing the compounding. It is also described as (PMT). Therefore, we are using PMT in place of “C”. The PMT stands for the Principal amount of future value of the annuity. We are using the “Cash value or “C” in the annuity payment calculator.

Growth Rate (G):

It is the growth rate of the annuity per period in the form of a percentage, which means we need to enter the growth rate as it is added to the interest rate after the time prescribed in the formulas. When you are using the future value of the annuity calculator, it is optional to prescribe the Growth Rate (G) as the interest rate remaining the same for a certain period

Payment frequency(q):

How often you are going to pay during each period of time, for yearly time periods we need to enter a value in the future value of annuity calculator =1, quarterly=4, monthly=12,daily=365, etc.

Payment types:

The payment types can be changed according to the annuity types, for the ordinary annuity, we are at the end of the installment period. The ordinary annuity formula misses the (1+i) as we are paying at the end of the installment period. For annuity due, we are paying the installment at the start of the installation time. We do add the term (1+i) as we are paying at the start of the installment period. For annuity due measurements we do require a future value annuity due calculator.

Future values (FV):

The future value or FV is the value of the present values of cash flows. We insert the values in the future value of the annuity calculator to realize the future value of the present amount. The future value of an annuity is calculated against the number of time intervals.

The Future Value of the Annuity table:

We are presenting a table by inserting the values of $1 per period (n) changes from 1 to 50 and “i” changes from 1% to 5%. We have inserted the values in the future value of the annuity calculator and rechecked all the values. The value starts from the time period “1” to “50” and the interest rate starts from 1% to 5%.

Periods	1%	2%	3%	4%	5%
1	1.0000	1.0000	1.0000	1.0000	1.0000
2	2.0100	2.0200	2.0300	2.0400	2.0500
3	3.0301	3.0604	3.0909	3.1216	3.1525
4	4.0604	4.1216	4.1836	4.2465	4.3101
5	5.1010	5.2040	5.3091	5.4163	5.5256
6	6.1520	6.3081	6.4684	6.6330	6.8019
7	7.2135	7.4343	7.6625	7.8983	8.1420
8	8.2857	8.5830	8.8923	9.2142	9.5491
9	9.3685	9.7546	10.1591	10.5828	11.0266
10	10.4622	10.9497	11.4639	12.0061	12.5779
11	11.5668	12.1687	12.8078	13.4864	14.2068
12	12.6825	13.4121	14.1920	15.0258	15.9171
13	13.8093	14.6803	15.6178	16.6268	17.7130
14	14.9474	15.9739	17.0863	18.2919	19.5986
15	16.0969	17.2934	18.5989	20.0236	21.5786
16	17.2579	18.6393	20.1569	21.8245	23.6575
17	18.4304	20.0121	21.7616	23.6975	25.8404
18	19.6147	21.4123	23.4144	25.6454	28.1324
19	20.8109	22.8406	25.1169	27.6712	30.5390
20	22.0190	24.2974	26.8704	29.7781	33.0660
21	23.2392	25.7833	28.6765	31.9692	35.7193
22	24.4716	27.2990	30.5368	34.2480	38.5052
23	25.7163	28.8450	32.4529	36.6179	41.4305
24	26.9735	30.4219	34.4265	39.0826	44.5020
25	28.2432	32.0303	36.4593	41.6459	47.7271
26	29.5256	33.6709	38.5530	44.3117	51.1135
27	30.8209	35.3443	40.7096	47.0842	54.6691
28	32.1291	37.0512	42.9309	49.9676	58.4026
29	33.4504	38.7922	45.2189	52.9663	62.3227
30	34.7849	40.5681	47.5754	56.0849	66.4388
31	36.1327	42.3794	50.0027	59.3283	70.7608
32	37.4941	44.2270	52.5028	62.7015	75.2988
33	38.8690	46.1116	55.0778	66.2095	80.0638
34	40.2577	48.0338	57.7302	69.8579	85.0670
35	41.6603	49.9945	60.4621	73.6522	90.3203
36	43.0769	51.9944	63.2759	77.5983	95.8363
37	44.5076	54.0343	66.1742	81.7022	101.6281
38	45.9527	56.1149	69.1594	85.9703	107.7095
39	47.4123	58.2372	72.2342	90.4091	114.0950
40	48.8864	60.4020	75.4013	95.0255	120.7998
41	50.3752	62.6100	78.6633	99.8265	127.8398
42	51.8790	64.8622	82.0232	104.8196	135.2318
43	53.3978	67.1595	85.4839	110.0124	142.9933
44	54.9318	69.5027	89.0484	115.4129	151.1430
45	56.4811	71.8927	92.7199	121.0294	159.7002
46	58.0459	74.3306	96.5015	126.8706	168.6852
47	59.6263	76.8172	100.3965	132.9454	178.1194
48	61.2226	79.3535	104.4084	139.2632	188.0254
49	62.8348	81.9406	108.5406	145.8337	198.4267
50	64.4632	84.5794	112.7969	152.6671	209.3480

All these values are for the ordinary annuity and it is best to put the values in the future value of ordinary annuity calculator. Try to calculate for other values and time “i” and “n”.

Working on future value of annuity calculator:

The working pattern of the annuity calculator math is described as follows:

Input:

Enter the values in the designated field.
Enter the principal amount, the interest rate in the field
Enter the number of periods and annuity type

Output:

When we are utilizing the future value of an annuity calculator, we are going to find the detailed output of annuity.

The future values of annuity displayed
Number of interest periods
The interest rate was applied.

FAQs:

What is an ordinary annuity example in common life?

An example of the ordinary annuity is the Home mortgage, for which the homeowner is bound for the payments at the end of each month according to the decided rate of interest. The future value of ordinary annuity calculator is used to implement the ordinary annuity.

What is an annuity due in common life?

The monthly bills such as rent, car payments, and cell phone payments are done at the start of the month. The insurance amount payment is a typical example of the annuity due and we need to use the annuity due calculator to find the monthly installment.

Do annuities count as the income of a person?

The annuity is fully taxable income, when you receive an annuity you are actually purchasing an asset and it is a taxable income.

What kind of annuities are best for the seniors?

Immediate annuities for senior citizens tend to be the best annuities for seniors because they begin paying out within 12 months of purchase.

Conclusion:

Annuities are a reliable source of income over a period of time and especially for the people after retirement. It can be insurance products and equity investments. The annuity helps to balance the financial benefits for a person and also for companies. The future value of an annuity can be a source of income for the deceased person. The future value of the annuity calculator is efficient in finding the future value of the annuity.