Value an annuity or solve its payout
This annuity calculator runs three jobs from one time-value-of-money engine. In Payment mode it solves the level income a lump sum will pay out over a fixed term. In Present value mode it tells you what a stream of future payments is worth today. In Future value mode it grows a stream of payments to a future total. You choose whether payments land at the end of each period (ordinary annuity) or the beginning (annuity-due), and whether they are monthly or annual. Everything is calculated privately in your browser, free.
You have $100,000 and want to know the monthly income it pays over 20 years at a 5% nominal annual rate, paid at the end of each month (ordinary).
The per-period rate is i = 0.05 / 12 = 0.0041667, and the number of payments is n = 20 × 12 = 240. Using the annuity payment factor PMT = PV × i / (1 − (1+i)−n), the income is about $659.96 per month. Over 240 payments that is roughly $158,389 paid out, of which $58,389 is interest earned and $100,000 is your original principal. Switch the timing to annuity-due and each payment falls slightly, because payments arriving earlier need less to fund them — the due value equals the ordinary value divided by (1 + i).
i = annualRate / 100 / m (m = 12 monthly, 1 annual)
n = years * m
ordinary PV factor a = (1 - (1+i)^-n) / i
ordinary FV factor s = ((1+i)^n - 1) / i
PV = PMT * a (x (1+i) if annuity-due)
FV = PMT * s (x (1+i) if annuity-due)
PMT = PV / a (/ (1+i) if annuity-due)
If i = 0: PV = FV = PMT * n, PMT = PV / nThis is a fixed-term (period-certain) calculator. It does not model a lifetime annuity — no mortality, life expectancy, or joint-and-survivor payouts — so a commercial lifetime payout will differ because the insurer prices in longevity, expenses, and profit. Results are mathematical projections at a single constant assumed rate and are not a guarantee of returns or income. The annual rate is treated as a nominal APR compounded at the payment frequency (i = APR ÷ m), matching Excel's PMT, PV, and FV with type 0 (ordinary) or 1 (due); if you have an effective annual rate, convert it first. No taxes, fees, inflation, surrender charges, or rate caps are modeled, so net spendable income from a real product will be lower — and a dollar received in year 20 buys less than a dollar today. This is an educational tool, not financial, tax, or investment advice.
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An ordinary annuity pays at the end of each period (most loans and bonds). An annuity-due pays at the start of each period (rent, leases, and most retirement income that pays you up front). Annuity-due values are higher by a factor of (1 + i), the per-period rate, so the timing toggle materially changes the answer over long terms.
Choose the Payment mode, enter your principal, the annual rate, the term in years, and the payment frequency. The calculator returns the level payment that exactly draws the principal down to zero over the term, plus the total paid out and total interest earned.
It is treated as a nominal annual rate (APR) compounded at the payment frequency, so the per-period rate is i = APR / m where m is 12 for monthly or 1 for annual. This matches Excel's PMT, PV, and FV functions. If you have an effective annual rate, convert it first with i = (1 + EAR)^(1/m) − 1.
No. This is a fixed-term (period-certain) calculator only. It does not model mortality, life expectancy, or joint-and-survivor payouts. A commercial lifetime annuity quote will differ because the insurer prices in longevity, expenses, and profit.
At a zero rate the calculator uses the linear limits: present value and future value both equal payment times the number of payments, and the payout equals the principal divided by the number of payments. There is no division by the rate, so no errors occur.
No. It is an educational time-value-of-money tool that assumes a single constant rate and models no taxes, fees, inflation, or surrender charges. Real returns and real annuity products vary. Confirm any decision with a licensed advisor.
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