Annuity Calculator
An annuity is a series of equal payments: 1000 a year for 10 years at 6 % grows to 13,180.79.
13180.7949423809
Full answer, then cut to fewer decimals (not rounded):
- 13180.7949423809
- 13180.794942380
- 13180.79494238
- 13180.7949423
- 13180.794942
- 13180.79494
- 13180.7949
- 13180.794
- 13180.79
- 13180.7
- Present value of the annuity PV
- 7,360.09
- Total paid in
- 10,000.00
- Interest earned (FV)
- 3,180.79
Step-by-step solution
- FV = PMT × [(1 + r)ⁿ − 1] ÷ r = 1,000.00 × [(1 + 6 %)^10 − 1] ÷ 6 % = 13,180.79
- PV = PMT × [1 − (1 + r)⁻ⁿ] ÷ r = 1,000.00 × [1 − (1 + 6 %)^−10] ÷ 6 % = 7,360.09
Annuity Formula
FV = PMT [(1 + r)ⁿ − 1] ÷ r
PMT payment per period, r rate per period, n number of payments (paid at period end)
Worked Example
1000 paid at the end of each year for 10 years at 6 %:
- FV = PMT × [(1 + r)ⁿ − 1] ÷ r = 1,000.00 × [(1 + 6 %)^10 − 1] ÷ 6 % = 13,180.79
- PV = PMT × [1 − (1 + r)⁻ⁿ] ÷ r = 1,000.00 × [1 − (1 + 6 %)^−10] ÷ 6 % = 7,360.09
Total paid in: 10,000.00 · Interest earned (FV): 3,180.79
Ordinary annuity or annuity due
An ordinary annuity pays at the end of each period, as with most loans and savings plans; an annuity due pays at the start, as with rent or lease payments, and is worth (1 + r) times more. Match the rate to the payment period: monthly payments need the monthly rate. The same formula gives loan repayments: the present value of the payments equals the amount borrowed.
Frequently asked questions
What is the difference between an ordinary annuity and an annuity due?
An ordinary annuity pays at the end of each period; an annuity due pays at the start, so each payment earns one more period of interest: multiply the ordinary annuity values by (1 + r).
How do I find the payment for a loan?
Rearrange the PV formula: PMT = PV × r ÷ [1 − (1 + r)⁻ⁿ]. In Excel, =PMT(rate, nper, -pv).
What rate should I use for monthly payments?
Use the rate per period: a 12 % annual rate paid monthly is 1 % per month, with n in months.
Sources
Last reviewed: . Factors are stored exactly and computed with 50-digit decimal arithmetic. See how we verify conversion factors.
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APA
Scientific Converters. (2026, October 15). Annuity Calculator. Retrieved October 25, 2026, from https://scientificconverters.com/calculators/annuity-calculator/
IEEE
Scientific Converters, "Annuity Calculator," scientificconverters.com. Accessed: Oct. 25, 2026. [Online]. Available: https://scientificconverters.com/calculators/annuity-calculator/