# Future Value of Annuity Calculator

## Calculator Use

Use this calculator to find the future value of annuities due, ordinary regular annuities and growing annuities.

The purpose of this calculator is to compute the future value of a series of deposits. This is an investment or saving account and, you are calculating the accumulation of a series of deposits, the annuity payments, and what the total value will be at some time in the future.

- Period
- commonly a period will be a year but it can be any time interval you want as long as all inputs are consistent.
- Number of Periods (t)
- number of periods or years
- Perpetuity
- for a perpetual annuity t approaches infinity. Enter p, P, perpetuity or Perpetuity for t
- Interest Rate (R)
- is the annual nominal interest rate or "stated rate" per period in percent. r = R/100, the interest rate in decimal
- Compounding (m)
- is the number of times compounding occurs per period. If a period is a year then annually=1, quarterly=4, monthly=12, daily = 365, etc.
- Continuous Compounding
- is when the frequency of compounding (m) is increased up to infinity. Enter c, C, continuous or Continuous for m.
- Payment Amount (PMT)
- The amount of the annuity payment each period
- Growth Rate (G)
- If this is a growing annuity, enter the growth rate per period of payments in percentage here. Each payment will increase by this percentage over the previous payment. For example, to increase each annual payment by the rate of inflation then enter the inflation rate here.
- Payments per Period (Payment Frequency (q))
- How often will payments be made during each period? If a period is a year then annually=1, quarterly=4, monthly=12, daily = 365, etc.
- Payments at Period (Type)
- Choose if payments occur at the
or if payments occur at the*end of each payment period (ordinary annuity, in arrears, 0)**beginning of each payment period (annuity due, in advance, 1)* - Future Value (FV)
- the future value of any present value cash flows (payments)

## Future Value Annuity Formulas:

You can find derivations of future value formulas with our future value calculator.

### Future Value of an Annuity

where r = R/100, n = mt where n is the total number of compounding intervals, t is the time or number of periods, and m is the compounding frequency per period t, i = r/m where i is the rate per compounding interval n and r is the rate per time unit t. If compounding and payment frequencies do not coincide, r is converted to an equivalent rate to coincide with payments then n and i are recalculated in terms of payment frequency, q.

If type is ordinary, T = 0 and the equation reduces to the formula for
**future value of an ordinary annuity**

otherwise T = 1 and the equation reduces to the formula for
**future value of an annuity due**

### Future Value of a Growing Annuity (g ≠ i)

where g = G/100

### Future Value of a Growing Annuity (g = i)

**Future Value of a Perpetuity or Growing Perpetuity (t → ∞)**

For g < i, for a perpetuity, perpetual annuity, or growing perpetuity, the number of periods t goes to infinity therefore n goes to infinity and, logically, the future value goes to infinity.

## Continuous Compounding (m → ∞)

Again, you can find these derivations with our future value formulas and our future value calculator.

### Future Value of an Annuity with Continuous Compounding (m → ∞)

If type is ordinary annuity, T = 0 and we get the
**future value of an ordinary annuity with continuous compounding**

otherwise type is annuity due, T = 1 and we get the** future value of an annuity due with continuous compounding**