What is the future value of an annuity?
The future value of an annuity is the total amount your series of regular payments will be worth at a specified future date, including the interest earned on those payments.
What is the difference between ordinary annuity and annuity due?
An ordinary annuity has payments at the end of each period, while an annuity due has payments at the beginning. Annuity due values are slightly higher because each payment earns interest for one additional period.
Can I use this calculator for monthly or quarterly payments?
Yes. The calculator works for any regular payment interval. Just set the interest rate and periods to match your payment frequency—use monthly rates and periods for monthly payments, or quarterly rates for quarterly payments.
Why is my future value much larger than my total contributions?
The difference is compound interest. Each payment earns interest over time, and that interest itself earns more interest. Over years, this compounding effect significantly grows your total value.
What does the annuity factor tell me?
The annuity factor is a multiplier that shows how much each dollar of regular payment will grow. Multiply your payment amount by the annuity factor to get your total future value.