FinanceUpdated Aug 2026

Annuity Calculator

Solve for present value, future value, or monthly payout of an ordinary annuity with year-by-year breakdowns.

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Updated 2026

What is an annuity?

An annuity is a stream of equal payments made at regular intervals — most commonly monthly — over a set term or for life. The three core time-value-of-money problems are: (1) what lump sum is needed today to fund a payment stream, (2) what a lump sum grows to over time with no additional payments, and (3) what monthly income a lump sum produces when amortized. Each problem uses a related formula derived from the future value of $1 and the present value of $1. The calculator below handles all three with a year-by-year balance schedule.

Annuity Calculator

in dollars per month

Compounded monthly in this calculator

Present value of payment stream

Lump sum needed today:

$227,288

Total payments:

$360,000

Total interest paid:

$132,712

Estimates only. Uses ordinary annuity formulas (payments at end of period). For annuities-due (payments at start of period), multiply the result by (1 + r). Real annuity products from insurers include expense loadings, surrender charges, and mortality credits that are not modeled here.

Year-by-year breakdown

YearBalanceCumulative paid inCumulative interest
1$220,498$18,000$11,210
2$213,361$36,000$22,073
3$205,859$54,000$32,571
4$197,972$72,000$42,685
5$189,683$90,000$52,395
6$180,969$108,000$61,681
7$171,810$126,000$70,522
8$162,181$144,000$78,893
9$152,061$162,000$86,773
10$141,422$180,000$94,134
11$130,239$198,000$100,951
12$118,484$216,000$107,196
13$106,128$234,000$112,840
14$93,139$252,000$117,851
15$79,486$270,000$122,198
16$65,134$288,000$125,846
17$50,049$306,000$128,761
18$34,191$324,000$130,903
19$17,522$342,000$132,234
20$0$360,000$132,712

Editorial standards

Every CalcCentral calculator is authored by a credentialed subject-matter expert and independently reviewed before publication. Our editorial policy follows the same E-E-A-T guidelines used by Google to evaluate YMYL (your-money-or-your-life) pages.

Author

Maya Chen, CFA

Chartered Financial Analyst

Independently reviewed

Dr. Aaron Pak, PhD

Doctor of Kinesiology & Public Health

Last reviewed: August 12, 2026 · Next scheduled review: quarterly

Verified accuracy

Cross-checked against authoritative formulas (IRS, NIST, ACM) and updated for 2025/2026 tax years and rates.

Instant results

No server roundtrip. All math runs in your browser so results appear the moment you finish typing.

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Learn as you calculate

Each calculator includes the formula, plain-English explanation, and FAQs so you understand the result.

Estimates only. Calculator results are for educational and planning purposes — not professional advice. For binding decisions on taxes, investments, health, or legal matters, consult a qualified professional.

FAQ

Frequently asked questions

Everything you need to know about this calculator. Can't find what you're looking for? Email our team.

An annuity calculator is a free financial tool that solves for one of three variables in an ordinary annuity: the present value (lump sum needed today to fund a payment stream), the future value (what a lump sum grows to with no additional payments), or the monthly payout (what a lump sum produces as monthly income for a set term). It uses the standard time-value-of-money formulas and shows a year-by-year balance, total interest, and total payments.

How it works

How to solve any annuity problem with the standard formulas

Our annuity calculator solves for present value, future value, or monthly payout of an ordinary annuity using the standard time-value-of-money formulas.

  1. 1

    Pick the calculation mode

    Choose Present value (lump sum needed today to fund a payment stream), Future value (what a lump sum grows to with no additional payments), or Monthly payout (what a lump sum produces as monthly income for a set term).

  2. 2

    Enter the known values

    Fill in the two known values plus the interest rate and term in years. For example, in Present value mode, enter the monthly payment and term — the calculator returns the lump sum needed today. The annuity calculator applies the matching formula: PV = PMT × [(1−(1+r)^-n)/r], FV = PMT × [((1+r)^n−1)/r], or PMT = PV × [r/(1−(1+r)^-n)].

  3. 3

    Read the result and breakdown

    The annuity calculator shows the solved value, total payments, and total interest paid or earned. It also displays a year-by-year schedule with the running balance, cumulative contributions, and cumulative interest so you can see exactly how the math plays out month-by-month.

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