Annuity Calculator

An ordinary annuity is a stream of equal payments made at the end of each period. The present value is what that payment stream is worth today, discounted at a given interest rate. Examples include regular loan payments and pension distributions.

Present value is what a stream of future payments is worth today. Future value is how much a lump sum or payment stream will grow to. This calculator focuses on present value — what you need to invest today to fund a stream of regular payments.

Use the rate you expect to earn (for savings) or are charged (for loans). If you're unsure, look at current mortgage rates, savings account rates, or bond yields. The rate is typically stated as an annual percentage, and this calculator converts it to the rate per period automatically.

It tells the calculator how many times per year payments occur. Monthly is 12, quarterly is 4, semi-annual is 2, and annual is 1. If you have a 30-year mortgage with monthly payments, the number of periods is 30 × 12 = 360 months.

A solution for interest rate may not exist if the payments are too low to ever recover the present value. For example, a $100,000 annuity funded by $1/month payments will never solve for a positive rate, no matter how long the payments continue.