Finance
Annuity Calculator: Payments and Values
Learn how annuities work and calculate future and present values.
An annuity is a series of equal payments at regular intervals.
Types
- Ordinary: End of period
- Due: Beginning of period
- Perpetuity: Forever
Future Value
FV = PMT × [((1+r)^n - 1) / r].
Present Value
PV = PMT × [(1 - (1+r)^(-n)) / r].
Examples
Mortgages, car loans, retirement withdrawals, lottery payouts are all annuities.
Frequently Asked Questions
What is an annuity?
Equal payments at regular intervals — mortgages, retirement income, lottery.
Ordinary vs due?
Ordinary: end of period. Due: beginning, worth more.
Retirement connection?
Retirement income is structured as an annuity from savings.