Annuity Calculator
Annuity Accumulation
Results
| Future Value | — |
|---|---|
| Total Payments | — |
| Total Interest Earned | — |
How to Use This Annuity Calculator
Before an insurance agent quotes a deferred annuity, I like to know what plain compound math says $500/month should grow to over 20 years. This accumulation-phase calculator strips out riders and surrender schedules—just equal payments, rate, and frequency.
- Enter periodic payment amount. Equal deposit each period during accumulation.
- Enter annual interest rate and number of years. Use the credited rate assumption for comparison.
- Choose payment frequency and timing. Monthly/quarterly/etc., and beginning vs end of period.
- Press Calculate. Review future value, total payments made, and total interest earned.
Model the distribution phase with the Annuity Payout Calculator, or compare to generic compounding on the Compound Interest Calculator.
Annuity Formulas and Practical Applications
An annuity accumulation is an ordinary or due annuity: a string of equal deposits compounded at a fixed rate. Think of it as autopilot DCA with a guaranteed crediting rate—for math purposes, not necessarily an insurance contract.
Future value of annuity
FV = PMT × [((1 + r)n − 1) / r]
$500/month at 5% compounded monthly for 20 years → about $205,000 future value on roughly $120,000 paid in—the rest is compounded interest.
Frequently Asked Questions
What is the accumulation phase of an annuity?
During accumulation, you make equal periodic payments that compound at the stated rate until the end of the term. This calculator shows total future value and interest earned.
How does payment timing affect future value?
Beginning-of-period payments earn interest for the full interval. End-of-period payments produce a slightly lower future value.
What payment frequencies are supported?
Monthly, quarterly, semiannual, and annual payment schedules are available.
Does this include insurance annuity fees?
No. This is pure compound-annuity math. Insurance contracts may add mortality expenses, riders, and surrender charges.
How is this different from the Annuity Payout Calculator?
This tool grows periodic deposits into a future lump sum. The Annuity Payout Calculator converts a lump sum into periodic withdrawals.