You may enter the values in the Future Value of Annuity calculator:
Payment per period (PMT):
Interest rate in % (r):
Number of periods (n):
How to use the Future Value of Annuity Calculator
Let’s review a simple example to demonstrate how to use the calculator.
To start, suppose that you have the following values:
- Payment per period (PMT) = 5000
- Interest rate (r) = 4%
- Number of periods (n) = 10
You can then type those values in the calculator:
Press on the “Calculate Future Value of Annuity” button, and you’ll get the result of 60030.5356:
How to Manually Calculate the Future Value of Annuity
You can use the formula below in order to calculate the Future Value of Annuity:
PMT * [(1 + r)n - 1]
Future Value of Annuity = r
Where:
- PMT = Payment per period
- r = Interest rate
- n = Number of periods
For example, let’s say that your goal is to calculate the Future Value of Annuity, given the following information:
- PMT = 5000
- r = 4%
- n = 10
You may then calculate the Future Value of Annuity as follows:
PMT * [(1 + r)n - 1] 5000* [(1 + 0.04)10 - 1]
Future Value of Annuity = r = 0.04 = 60030.5356
You’ll then get the value of 60030.5356.
To calculate the Present Value of Annuity, you may check the Present Value of Annuity calculator.