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Future Value of Annuity Calculator

# Future Value Of Annuity Calculator

Future Value Of annuity is the amount paid in or out for each period. The annual nominal interest rate Expressed as a percentage. Annuity term constitutes lifespan of the annuity.The interest is compounded number of time.

**Let us consider,**

**Payment amount (PMT)**is the amount paid in or out (cash flow) for each period.**Interest rate (r)**is the annual nominal interest rate expressed as a percentage.**Annuity term**constitutes the lifespan of the annuity.**Compounding frequency (m)**refers to the number of times the interest is compounded.**Payment frequency (q)**indicates how often the payments will materialize.**Type of annuity (T)**signifies the timing of the payment in each payment period (ordinary annuity: end of each payment period; annuity due: the beginning of each payment period).**Future value of annuity (FVA)**the future value of any present value cash flows (payments).**Growth rate of annuity (g)**is the percentage increase of an annuity in the case of a growing annuity.**Number of periods (t)**shows the annuity term in years.**Equivalent interest rate**and**Periodic equivalent interest rate**are the interest rates computed when the payments and compounding occur at a different frequency (cannot be set manually).

**annuity formula us,**

- Ordinary Annuity:FVA = PMT / i * ((1 + i) ^ n – 1)
- Annuity Due:FVA = PMT / i * ((1 + i) ^ n – 1) * (1 + i)

**let us consider,**

n = m * t where n is the total number of compounding intervals

i = r / m where i is the periodic interest rate (rate over the compounding intervals)

- Future Value of a Growing Annuity (g ≠ i):FVA = PMT / (i – g) * ((1 + i) ^ n – (1 + g) ^ n)
- Future Value of a Growing Annuity (g = i):FVA = PMT * n * (1 + i) ^ (n – 1)
- Future Value of an Annuity with Continuous Compounding (m → ∞)

FVA = PMT / (eʳ – 1) * (eʳᵗ – 1)