Annuity Calculator

Estimates only. This tool is provided for educational purposes and is not financial advice. It models the figures you enter — it does not know your credit terms, local taxes, or fees. Talk to a licensed adviser before making a decision.

How to use the annuity calculator

Enter the periodic payment you make.
Enter the annual interest rate.
Enter the number of years.
Pick compounding - monthly or yearly.
Read the future value, total paid and interest earned.

Ordinary vs annuity due

This tool uses an ordinary annuity, where payments land at the end of each period. Payments at the start (annuity due) grow slightly more because each one compounds a period longer.

A worked example

A $500 monthly payment at 6% for 20 years becomes about $231,203. You paid in $120,000 and interest added $111,203. Switch to yearly compounding and the future value drops, because money compounds less often.

Why frequency changes the answer

More frequent compounding means interest starts earning interest sooner. Monthly beats yearly on the same nominal rate - the gap widens as the rate and term rise.

Frequently asked questions

What is an ordinary annuity?

A series of equal payments made at the end of each period. Most savings and loan schedules fit this pattern.

How is future value calculated?

Each payment is compounded at the periodic rate for the periods remaining. The sum of those compounded values is the future value.

Does compounding frequency matter?

Yes. Monthly compounding grows faster than yearly on the same nominal rate, because interest reinvests sooner.

What is total interest?

The future value minus the sum of all payments you made - the compounding did the rest.

Can the rate be zero?

If the rate is zero the future value equals the total payments, with no interest earned.