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Calculator Description
Enter Principal amount ($), Interest rate (%) and Number of payments and the remaining scenario settings to review payment per period with this tool. An ordinary annuity pays at period end; an annuity due pays at period beginning.
Compare the capital needed to fund recurring payments with the value accumulated from recurring deposits. Payment timing is central to choosing the appropriate annuity model.
An ordinary annuity pays at period end; an annuity due pays at period beginning. Moving the payment changes how long each amount earns interest.
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Frequently Asked Questions
What information do I need for the Annuity Calculator?
Prepare Principal amount ($), Interest rate (%), Number of payments, Payment frequency, Annuity type and Payment amount ($). Select the calculation mode and payment timing before entering the balance, recurring payment, rate and period count.
What changes between an ordinary annuity and an annuity due?
An ordinary annuity pays at period end; an annuity due pays at period beginning. Moving the payment changes how long each amount earns interest. The model assumes the selected rate and payment interval remain stable. It does not price insurer guarantees, mortality pooling or contract charges.
How can I check the annuity calculator with an example?
Use the full settings in the worked-example table. They produce Payment Per Period: $8024.26; Total payments: 160485. Compare the method and units as well as the displayed number.
Which assumptions apply to this annuity calculator?
Ordinary payments occur at period end; due payments at period beginning. Principal mode returns a withdrawal payment; payment mode returns the accumulated value separately. Select the calculation mode and payment timing before entering the balance, recurring payment, rate and period count.
When should I verify the annuity calculator result elsewhere?
The model assumes the selected rate and payment interval remain stable. It does not price insurer guarantees, mortality pooling or contract charges. For a transaction or account decision, compare the inputs with the applicable statement, contract or official rules.
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How to Use This Calculator
- Select the calculation mode and payment timing before entering the balance, recurring payment, rate and period count.
- Fill in Principal amount ($), Interest rate (%), Number of payments and Payment frequency; then complete the other fields shown for your selected mode. Use the field units rather than copying an unlabeled value.
- For a result check, reproduce the example beginning with Principal amount ($) = 100000 and Interest rate (%) = 5; copy the remaining settings from the detailed guide.
- Use the page's Calculate or Convert control, or read the updated result where the tool recalculates automatically. Locate Payment Per Period and any supporting breakdown.
- Interpret the result with this distinction in mind: An ordinary annuity pays at period end; an annuity due pays at period beginning. Keep the selected inputs alongside the output when comparing scenarios.
Practical example and result check
Worked annuity calculator example. Set Principal amount ($) = 100000; Interest rate (%) = 5; Number of payments = 20; Payment frequency = Annually; Annuity type = Ordinary Annuity; Payment amount ($) = 0. The corresponding output is Payment Per Period: $8024.26; Total payments: 160485. An ordinary annuity pays at period end; an annuity due pays at period beginning.
Before relying on the result
- Confirm the units, dates, rates and time periods entered.
- Review which costs, measurements or assumptions are included and excluded.
- Change one important input at a time to understand the result sensitivity.
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Detailed Calculator Guide
Choose the right question for Annuity Calculator
Compare the capital needed to fund recurring payments with the value accumulated from recurring deposits. Payment timing is central to choosing the appropriate annuity model.
Prepare the inputs
Select the calculation mode and payment timing before entering the balance, recurring payment, rate and period count.
Annuity Calculator: worked input settings| Field | Example value | Entry check |
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| Principal amount ($) | 100000 | Use the amount for this scenario in the currency and period shown by the field. |
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| Interest rate (%) | 5 | Enter a percentage in the form requested by the field, keeping its stated time basis. |
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| Number of payments | 20 | Enter the value for this scenario using the field label as the reference. |
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| Payment frequency | Annually | Check the selected interval against the payment, deposit or growth assumptions. |
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| Annuity type | Ordinary Annuity | Enter the value for this scenario using the field label as the reference. |
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| Payment amount ($) | 0 | Use the amount for this scenario in the currency and period shown by the field. |
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Follow the calculation
Relationship used for this example: PV = PMT × (1−(1+i)^−N)/i; annuity due multiplies this factor by (1+i). At i=0, PV=PMT×N.
An ordinary annuity pays at period end; an annuity due pays at period beginning. Moving the payment changes how long each amount earns interest.
Assumptions for this model: Ordinary payments occur at period end; due payments at period beginning. Principal mode returns a withdrawal payment; payment mode returns the accumulated value separately.
Read the worked result
Results for the worked settings| Output | Displayed result |
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| Payment Per Period | $8024.26 |
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| Total payments | 160485 |
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With these settings, payment per period is $8024.26. Use the same units and calculation mode when reproducing this example.
What changes between an ordinary annuity and an annuity due?
An ordinary annuity pays at period end; an annuity due pays at period beginning. Moving the payment changes how long each amount earns interest. The model assumes the selected rate and payment interval remain stable. It does not price insurer guarantees, mortality pooling or contract charges.
Apply the result to your own scenario
Replace the illustrative principal amount ($) value (100000) with your own value, then complete the other inputs for the same scenario. Select the calculation mode and payment timing before entering the balance, recurring payment, rate and period count.
