BYTETOOLS

Annuity Calculator

Calculate the present value, future value or sustainable payout of an annuity, for both ordinary annuities and annuities due, at any rate and term.

$4,329.48
Present value
$5,000.00
Total of all payments
$670.52
Interest component

Both timing conventions

TimingPresent value
End of period (ordinary)$4,329.48
Start of period (due)$4,545.95

5 periods at 5.0000% per period. An annuity due is worth (1 + r) times the ordinary annuity for the same payment.

Textbook time-value formulas: PV = PMT × (1 − (1 + r)⁻ⁿ) / r and FV = PMT × ((1 + r)ⁿ − 1) / r, with a zero-rate limit of n. This does not price a commercial annuity contract, which also carries fees, mortality assumptions and guarantees. Calculated in your browser; estimates only, not financial advice.

What is the Annuity Calculator?

The ByteTools Annuity Calculator handles the three questions people ask about a stream of level payments: what is it worth today, what will it grow to, and how much can a lump sum pay out.

  • Solves for present value, future value or the sustainable payment
  • Ordinary annuity and annuity due, with both shown for comparison
  • Annual, semi-annual, quarterly or monthly payment frequency
  • Shows total payments and total interest alongside the answer
  • Handles a zero interest rate without dividing by zero
  • Private in-browser maths; a formula tool, not a product quote

How to use the Annuity Calculator

  1. 1

    Choose what you want to solve for: present value, future value or the periodic payment.

  2. 2

    Select the payment timing — end of period (ordinary) or start of period (due).

  3. 3

    Enter the payment amount or lump sum, whichever your mode needs.

  4. 4

    Set the annual rate, the number of years and the payments per year.

  5. 5

    Read the result along with the total paid and the interest component.

About the Annuity Calculator

The ByteTools Annuity Calculator handles the three questions people ask about a stream of level payments: what is it worth today, what will it grow to, and how much can a lump sum pay out. Pick the mode you need, enter the payment or the lump sum, the periodic rate and the number of periods, and the standard annuity formulas do the rest.

Both timing conventions are supported. An ordinary annuity pays at the end of each period, which is how most loans and bonds work; an annuity due pays at the start, which is how rent and many pension payouts work. Switching between them multiplies the result by (1 + r), and the tool shows both so the difference is never a surprise.

Payment frequency is selectable, so you can work in years, quarters or months without converting rates by hand. Everything is calculated in your browser with nothing uploaded, and the output is a mathematical result for planning — it does not price a real insurance annuity product, which carries fees and guarantees this model knows nothing about.

Frequently asked questions

What is the present value of an annuity?

It is what a future stream of level payments is worth in today's money: PV = PMT × (1 − (1 + r)⁻ⁿ) ÷ r. For $1,000 a year over five years at 5%, the annuity factor is 4.32948, so the present value is $4,329.48.

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 beginning. Because every payment in an annuity due sits one period closer to today, its value is simply the ordinary value multiplied by (1 + r).

How much income can a lump sum provide?

Use the payment mode: PMT = PV × r ÷ (1 − (1 + r)⁻ⁿ). It tells you the level amount a pot can pay out over a fixed number of periods before it is exhausted, assuming the balance keeps earning the rate you entered.

Does this calculate a real insurance annuity quote?

No. It applies the textbook time-value formulas. A commercial annuity contract also prices mortality, fees, guarantee periods and inflation riders, so an insurer's quote will differ. Use this to understand the maths, then compare it against real quotes.

What rate should I enter for the payment frequency I chose?

Enter the annual rate and set payments per year; the tool divides it into a periodic rate for you. If your rate is already quoted per period, set payments per year to 1 and enter the number of periods directly.

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