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Future Value of Annuity Calculator

Enter the periodic contribution, annual rate and number of periods to compute the future value of regular contributions.

Input Data

Periodic Payment
Annual Rate
%
Periods Per Year
times
Years
yr
Timing

Results

Maturity value at the end of the term.
2,055,168
Total principal contributed over the term.
1,200,000

At a glance:Periodic rate i = annual rate / payments per year; total periods n = years × payments per year. Ordinary annuity FV = PMT × [(1+i)^n − 1]/i; annuity due multiplies by (1+i). Total principal = PMT × n.

Formula

i = r/m; n = years × m.

Ordinary FV = PMT × [(1+i)^n − 1]/i.

Annuity due FV = ordinary × (1+i); total principal = PMT × n.

How to Use

  1. Enter the periodic payment.
  2. Enter the annual rate, payments per year and number of years.
  3. Choose the contribution timing (beginning/end of period).
  4. The calculator shows the future value and total principal.

Case Studies

Monthly HK$5,000, 5%, 20 years (ordinary)

i = 0.05/12 = 0.0041667; n = 240.

FV = 5,000 × (1.0041667^240 − 1)/0.0041667 ≈ 2,039,000.

Total principal = 5,000 × 240 = 1,200,000.

FAQ

Is the difference between beginning and end large?

It is about one period of interest (roughly a (1+i) factor). Over the long run the accumulation is meaningful: monthly for 20 years gives about 1+i ≈ 0.4% more in total value — small in percentage but not small in absolute terms. MPF/monthly plans are mostly end-of-period.

How does it differ from a lump-sum future value?

A lump sum compounds from a single up-front amount; an annuity contributes in instalments, each earning interest for a different length. This tool computes the instalment accumulation, ideal for monthly-salary savings planning.

What return should I enter?

Depends on the asset: conservative savings ~1–3%, mixed bond/equity ~4–6%, long-term equities ~7–10% (more volatile). Overly high assumptions overstate results; test conservatively.

Does inflation affect it?

Yes. The nominal future value is not inflation-adjusted; real purchasing power needs an inflation-adjusted calculator. Anchor savings goals to real needs.

Is it related to the retirement corpus calculator?

Yes. This tool computes 'the total accumulated by retirement'; the retirement corpus computes 'how much is needed after retirement'. They connect: monthly accumulation vs required principal.

Does i=0 (no interest) cause an error?

No. At i=0 the formula degenerates to PMT × n (pure summation); this tool handles that case specially.

Related Tools

References

Content review: Calculatorism Science Team. Results are for reference only; please refer to the relevant authorities for the official figures.

Found a problem with the results?

If this calculator's result is wrong, or you have any question about the calculation logic, please let us know. You are viewing:Future Value of Annuity Calculator（/finance/future-value-annuity）。