Future Value of annuity Calculator Online.

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)


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