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Future Value of Annuity Calculator

Future value of equal deposits

How it is calculated

The tool treats the deposits as an ordinary annuity: equal payments made at the end of each period, each growing at the same rate. FV = PMT × ((1 + r)n − 1) ÷ r, where PMT is the payment per period, r is the interest rate per period as a decimal (the field is a percentage, divided by 100 by the tool) and n is the number of periods. At a rate of 0, the tool simply returns PMT × n. Total contributed is PMT × n and interest earned is FV − contributions. The rate and the number of periods must use the same time unit. Taxes, fees, inflation and deposits at the start of each period (an annuity due) are not included.

Worked example

You deposit 200 at the end of each month for 5 years, so n = 60, at 0.5% per month. The growth factor is 1.00560 ≈ 1.34885. Subtract 1: 0.34885. Divide by 0.005: 69.770. Multiply by 200: $13,954.01. You paid in 200 × 60 = $12,000.00, so the interest earned is $1,954.01.

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Common mistakes

  • Entering an annual rate with monthly deposits. Divide the annual rate by 12 for the monthly field, e.g. 6% a year is about 0.5 a month.
  • Entering years of saving as the periods with monthly payments. The number of periods must be in months, here 60 for five years.
  • Typing the rate as 0.005 instead of 0.5. The field is a percentage, so 0.005 means half of one hundredth of a percent.
  • Assuming deposits are made at the start of each period. This tool pays at the end, so an annuity due gives a higher value.
  • Reading the result as inflation-adjusted. It is a nominal amount, and its buying power will be lower in the future.

About this calculator

For an ordinary annuity — equal payments made at the end of each period — the future value is FV = PMT × [(1 + r)ⁿ − 1] / r, where PMT is the periodic payment, r the periodic interest rate, and n the number of periods. It's the compound-interest mirror image of a loan amortization formula, tracking how each deposit grows for a different number of remaining periods.

Savers use it to project how a recurring 401(k) contribution or monthly deposit into an investment account grows by retirement, and financial planners use the same formula to size the regular deposits needed to hit a target future goal, from a house down payment to a college fund.

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