Future Value of Annuity Calculator
Saving a fixed amount every month is, in finance terms, an annuity — and its future value has a clean formula. Use this to see what steady contributions compound to over a working career or a deferral period.
Illustrative only, based on the assumptions you enter — not a quote, an offer, or financial advice. Rates and rules change; verify current figures with a licensed professional before acting.
How this calculator works
The calculator uses FV = PMT × ((1 + i)ⁿ − 1) ÷ i, the future-value-of-annuity formula, compounding at the rate you set. "Beginning of period" contributions earn one extra period of growth each.
The split between "total contributed" and "growth" is the point: over long horizons, compounding does most of the work, which is why starting earlier beats contributing more later.
Frequently asked questions
What growth rate is reasonable?
That depends entirely on what you invest in — a guaranteed fixed-annuity rate is knowable in advance; market returns are not. Run a conservative and an optimistic case rather than one number.
Does this account for inflation?
No — results are in future (nominal) dollars. To think in today’s money, use a real rate: roughly your assumed return minus assumed inflation.
Does this account for taxes?
No. In a deferred annuity, 401(k), or IRA, growth compounds untaxed and is taxed on the way out; in a taxable account, tax drags on returns each year.
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This tool is for general education only and is not financial, tax, or legal advice. Results are illustrations based on your inputs — not quotes or guarantees. Consult a licensed professional before making decisions about annuities, settlements, or retirement accounts.