Annuity Calculator
Calculate the future value, present value, or payment of regular annuity payments.
Annuity Formulas
Future Value:
FV = PMT × [(1+r)^n − 1] / r
Present Value:
PV = PMT × [1 − (1+r)^-n] / r
r = period rate · n = number of periods
FAQs
An annuity is a series of equal payments made at regular intervals. In financial products, annuities are insurance contracts that provide regular income payments, often used for retirement income.
A pension is employer-provided and the employer bears investment risk. An annuity is purchased (often from insurance companies), converting savings to guaranteed income.