Monthly Payment
$202.76
Total Paid
$12,165.84
Total Interest
$2,165.84
How it works
The Annuity Calculator computes the present value, future value, payment amount, or time period of any annuity — an ordinary annuity (payments at end of period) or an annuity-due (payments at beginning). Use it for retirement income planning, loan payment calculation, or any regular cash flow analysis.
An annuity is a series of equal, regular cash flows. Mortgages, car loans, pension payments, and lottery payouts are all annuities. The annuity formulas connect the four variables (present value, future value, payment amount, interest rate, and time) and this calculator solves for any one given the other three.
How to use it: enter any three of the five variables: present value (PV), future value (FV), payment amount (PMT), annual interest rate, and number of periods. The fifth variable is calculated. Toggle between ordinary annuity (payments at end of period, standard for loans) and annuity-due (payments at beginning, standard for leases and insurance).
Common uses: - Retirement: I have $500,000 at retirement at 5% return — how much can I withdraw monthly for 25 years? → $2,923/month - Savings: I want $100,000 in 10 years at 6% return — how much do I save per month? → $613/month - Loan: a $30,000 loan at 7% for 60 months — what is the monthly payment? → $594/month
Growing annuity: enables modeling of payments that grow at a constant rate each period (e.g., pension with 2% annual COLAs).
Privacy: annuity calculations run in the browser.
Frequently Asked Questions
- Ordinary annuity (annuity-immediate): payments occur at the end of each period. Most loans (mortgage, car, personal) are ordinary annuities. Annuity-due: payments occur at the beginning of each period. Leases and insurance premiums are annuity-dues. An annuity-due is worth slightly more than an ordinary annuity because each payment is received (or paid) one period earlier.
- This is a present value of annuity calculation. Enter PMT = $2,000, interest rate = your expected portfolio return (e.g., 5%/year = 0.4167%/month), number of periods = months you expect to need income (e.g., 25 years = 300 months), FV = 0. The present value tells you the lump sum needed today.
- A perpetuity is an annuity that pays forever (infinite periods). The present value of a perpetuity = PMT / interest rate. An endowment paying $50,000/year in perpetuity at a 5% return requires a $1,000,000 corpus ($50,000 / 0.05). Annuities have a finite end date; perpetuities do not. The perpetuity calculator is a special case available as a toggle.
- Fixed annuity payments lose purchasing power over time due to inflation. A $2,000/month payment in 2025 has the same nominal value in 2045, but only the purchasing power of about $1,100 in 2025 dollars at 3% inflation. Growing annuities (with an annual increase, like Social Security's COLA) maintain purchasing power better. Enable the inflation adjustment to see real (purchasing power) values.