Future Value of Annuity
Project the growth of your regular savings. Whether you're planning a 401k contribution or a monthly savings goal, this tool provides precise future value estimates including optional growth factors.
What is the future value of an annuity?
The future value of an annuity measures how much a series of regular payments will be worth at a future date, assuming a specific interest rate and compounding frequency.
What is a "Growing Annuity"?
A growing annuity is a series of payments that increase at a constant rate (g) each period. This is often used to model retirement contributions that increase as your salary grows.
What is the difference between an ordinary annuity and an annuity due?
An ordinary annuity assumes payments are made at the END of each period. An annuity due assumes payments are made at the BEGINNING of each period. Annuities due always result in a higher future value because each payment earns interest for one extra period.
How does compounding frequency affect the annuity?
More frequent compounding (e.g., monthly vs. annually) results in a higher future value because interest is calculated and added to the balance more often.