Scenario 1
Pension valuation
$1,000/month for 20 years at 5% → present value is $151,525. That's what the pension is worth as a lump sum today.
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Annuity Calculator
Evaluate any stream of payments — whether you're buying or selling.
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Results update instantly as you type or drag.
1 – 1,000,000
$
Amount paid or received each period
0.1 – 20
%
1 – 50
Quick insights
Future value (FV)
$411,034
Total payments
$240,000
Quick answer
What is an annuity?
An annuity is a series of equal periodic payments. PV = PMT × (1 − (1+r)^−n) / r. FV = PMT × ((1+r)^n − 1) / r.
How it works
From inputs to result in four steps
A quick walkthrough of what this calculator does behind the scenes.
- 1
Enter the regular payment amount.
- 2
Enter the annual interest rate.
- 3
Set the number of years.
- 4
See present value, future value, and effective total.
Formula
The math behind the number
No black box — here's exactly how the result is computed.
Formula
PV of annuity = PMT × (1 − (1+r)^−n) / r
FV of annuity = PMT × ((1+r)^n − 1) / r
PMT = periodic payment, r = rate per period, n = number of periodsExamples
Real-world scenarios
See how the numbers play out for typical use cases.
Scenario 2
Retirement income
$500,000 lump sum at 4% for 25 years → monthly payment of ~$2,637.
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