Annuity Calculator
Calculate future value, present value, or payment for regular investment streams
Solve For
Payment Amount (₹)
₹
Annual Interest Rate (%)
%
Number of Years
yr
Payment Frequency
Annuity Type
Results
Calculated Value
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Total Paid In
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Interest Earned
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Annuity Formulae
FV = PMT × ((1+r)ⁿ − 1) / r
PV = PMT × (1 − (1+r)⁻ⁿ) / r
PMT = FV × r / ((1+r)ⁿ − 1)
What is an Annuity?
An annuity is a series of equal payments made at regular intervals. An ordinary annuity pays at the end of each period (like most loans and investments); an annuity due pays at the beginning (like rent). SIP investments are a common form of annuity.
Future Value (FV) tells you how much your regular payments will grow to. Present Value (PV) tells you the current worth of future payment streams (used in loan pricing and pension valuation). Payment mode helps you find what you need to invest regularly to reach a goal.
lightbulb Example
₹5,000/month for 10 years at 10%:
1r = 10%/12, n = 120
2FV = 5000 × ((1.00833)^120 - 1) / 0.00833
✓ FV ≈ ₹10.24 lakhs
quizFrequently Asked Questions
What's the difference between an ordinary annuity and an annuity due?
An ordinary annuity (most common — mortgages, SIPs) pays at the end of each period. An annuity due pays at the start. Because annuity-due payments are received earlier, their future value is always higher by a factor of (1+r). Rent is a classic annuity-due example; loan EMIs are ordinary annuities.
How is an annuity different from a SIP?
A SIP is a type of annuity — equal periodic payments into a mutual fund. The annuity calculator uses the same FV formula as the SIP calculator. The difference is that "annuity" is the broader mathematical concept; SIP is the specific product. An annuity calculator also lets you solve for PV and payment, which a SIP calculator typically doesn't.
Can I use this calculator for loan EMI calculations?
Yes. A loan EMI is the present-value annuity formula: PMT = PV × r / (1 − (1+r)⁻ⁿ). Enter the loan amount as Present Value, the annual interest rate, and the tenure to calculate the monthly payment. Our dedicated EMI calculator uses the same formula with additional features like prepayment analysis.