Calculator
Future value of annuity calculator
Enter an equal payment, a rate and a horizon to see what the stream of payments is worth at the end — with the interest portion separated from what you actually paid in.
Future value after 20 years
$260,463
$175,284 in today’s money at 2.0% inflation
- Total invested
- $120,000
- Interest earned
- $140,463
- From starting amount
- $0
- From contributions
- $260,463
12 compounding periods a year. Contributions are added at the end of each period.
| Year | Invested | Interest | Future value |
|---|---|---|---|
| 4 | $24,000 | $3,605 | $27,605 |
| 8 | $48,000 | $16,099 | $64,099 |
| 12 | $72,000 | $40,347 | $112,347 |
| 16 | $96,000 | $80,134 | $176,134 |
| 20 | $120,000 | $140,463 | $260,463 |
Ordinary annuity vs annuity due
An ordinary annuity pays at the end of each period — most savings plans, loan payments and dividend schedules work this way, and it is what the calculator above models. An annuity due pays at the start of each period, so every payment compounds for one extra period. To convert, multiply the result by (1 + r/n): at 7% compounded monthly that is about 0.58% more.
Why early payments matter most
In a 20-year monthly plan, the first payment compounds 240 times and the last compounds once. That asymmetry is why starting earlier beats contributing more later, and why the interest share of the balance accelerates in the final third of the horizon.
Related calculations
To include a starting balance alongside the payments, use the full future value calculator. To see what a recurring expense costs once foregone growth is counted, use the opportunity cost calculator.
Frequently asked questions
What is the future value of an annuity?
It is what a series of equal payments is worth at the end of the payment period once each payment has earned compound interest. Earlier payments compound for longer, so they contribute more to the total than later ones.
What is the future value of an ordinary annuity formula?
FV = PMT x (((1 + r/n)^(n x t) - 1) / (r/n)), where PMT is the payment made at the end of each period, r is the annual rate, n is the number of periods per year and t is the number of years.
What is the difference between an ordinary annuity and an annuity due?
An ordinary annuity pays at the end of each period; an annuity due pays at the beginning. Because every payment in an annuity due compounds for one extra period, its future value is the ordinary annuity result multiplied by (1 + r/n).
How do I calculate the future value of an annuity in Excel?
Use =FV(rate, nper, pmt, [pv], [type]). Set type to 0 for an ordinary annuity and 1 for an annuity due. For $500 a month at 7% for 20 years: =FV(0.07/12, 240, -500, 0, 0).