Future Value of Annuity Calculator
Calculate how much your regular investments will be worth in the future
Future Value
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Understanding Future Value of Annuity
What is an Annuity?
An annuity is a series of equal payments made at regular intervals. Common examples include monthly retirement contributions or investment deposits.
How Future Value is Calculated
The future value of an annuity is calculated using the formula:
FV = PMT × ((1 + r)^n - 1) / r
Where:
- PMT = Regular payment amount
- r = Interest rate per period
- n = Total number of periods
Key Factors Affecting Future Value
- Payment Amount: Higher regular payments lead to larger future values
- Interest Rate: Higher rates result in more significant growth
- Time Period: Longer investment periods allow more time for compound growth
- Payment Frequency: More frequent payments can lead to higher returns