Future Value Of Annuity
Calculator
Results
- Future value
- $34,885.02
Results
| Future value | 34,885.02 |
formula-map diagram
- Future value
- $34,885.02
Formula breakdown
Formula
FV = PMT × [((1 + r)^n − 1) ÷ r]= 34885.02
Note
This is a simplified financial model for educational purposes and does not constitute financial advice.
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See all →Frequently asked questions
What is an annuity in the context of this calculator?+
It refers to a series of equal, regularly spaced payments, such as monthly retirement contributions, not necessarily an insurance annuity product — the calculator projects what that stream of payments grows into by a future date given an assumed rate of return.
How does the timing of payments affect the future value?+
Payments made at the end of each period (an ordinary annuity) have slightly less time to grow than payments made at the start of each period (an annuity due), so the future value will differ depending on which timing convention you select.
Why does increasing the number of periods have such a large effect on the total?+
Each additional period both adds a new payment and gives every prior payment more time to compound, so the future value grows faster than linearly as the number of periods increases, which is why long-term contribution streams benefit disproportionately from an early start.
What happens to the projection if the assumed rate of return is zero?+
With a zero rate, the future value simply equals the sum of all the payments made, since there is no growth — the calculator's compounding terms drop out entirely and it becomes a straightforward addition.
How is this different from a lump-sum future value calculation?+
A lump-sum calculation grows a single amount invested once, while this calculator sums the growth of many separate contributions made over time, each compounding for a different length of time depending on when it was deposited.