Future Value of an Annuity Calculator

What does it do?

This future value of an annuity calculator works out the future value (FV) of a regular sum of money (Pmt) received at the end of each of n periods, using a discount rate i.

Formula

The calculator uses the future value of an annuity formula as shown below:

`FV = Pmt x ( (1 + i)n - 1 ) / i`

Instructions

The Excel future value of an annuity calculator, available for download below, is used to compute the future value by entering details relating to the regular payment, discount rate and the number of periods. The calculator is used as follows:

Step 1

Enter the regular payment amount (Pmt). The regular payment is the amount received at the end of each period for n periods. The amount must be the same for each period.

Step 2

Enter the discount rate (i). The discount rate is the rate used to discount each payment amount back from the end of the period in which is was made, to the beginning of period 1 (today). The rate should be for a period, so for example, if the period is a year, then the rate should be the yearly rate.

Step 3

Enter the number of periods (n). The number of periods is entered. A period can be any term (month, year etc), but must be consistent with the discount rate provided (see step 2).

Step 4

The future value of an annuity calculator works out the future value (FV). The answer is the value at the end of period n of an a regular sum of money received at the end of each of the n periods, at a discount rate of i. It is the future value of an annuity, sometimes referred to as the future value of an ordinary annuity.

The future value of an annuity calculator is one type of tvm calculator used in time value of money calculations, discover another at the links below.

Notes and major health warnings
Users use this free annuity calculator at their own risk. We make no warranty or representation as to its accuracy and we are covered by the terms of our legal disclaimer, which you are deemed to have read. This is an example of a annuity future value calculator that you might use when considering how to calculate the future value of an annuity. It is purely illustrative of a future value of an annuity calculator. This is not intended to reflect general standards or targets for any particular business, company or sector. If you do spot a mistake in this future value ordinary annuity calculator, please let us know and we will try to fix it.
Future Value of an Annuity Calculator November 6th, 2016

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