Annuity Calculator
Calculate the future value of an annuity with regular contributions.
Future value
$232,643
after 20 years
Total contributed
$130,000
Interest earned
$102,643
Effective rate
5.12%
Composition
Total contributed(55.9%)
Interest earned(44.1%)
Total contributed
Interest earned
Growth over time
255.907,561191.930,671127.953,7863.976,890
Yearly breakdown
| Year | Contributions | Interest | Balance |
|---|---|---|---|
| 1 | $6,000 | $651 | $16,651 |
| 2 | $6,000 | $991 | $23,642 |
| 3 | $6,000 | $1,349 | $30,991 |
| 4 | $6,000 | $1,725 | $38,716 |
| 5 | $6,000 | $2,120 | $46,837 |
| 6 | $6,000 | $2,536 | $55,372 |
| 7 | $6,000 | $2,972 | $64,345 |
| 8 | $6,000 | $3,431 | $73,776 |
| 9 | $6,000 | $3,914 | $83,690 |
| 10 | $6,000 | $4,421 | $94,111 |
| 11 | $6,000 | $4,954 | $105,066 |
| 12 | $6,000 | $5,515 | $116,580 |
| 13 | $6,000 | $6,104 | $128,684 |
| 14 | $6,000 | $6,723 | $141,407 |
| 15 | $6,000 | $7,374 | $154,782 |
| 16 | $6,000 | $8,058 | $168,840 |
| 17 | $6,000 | $8,778 | $183,617 |
| 18 | $6,000 | $9,534 | $199,151 |
| 19 | $6,000 | $10,328 | $215,479 |
| 20 | $6,000 | $11,164 | $232,643 |
What is an annuity?
An annuity is a financial product that provides regular payments. In the accumulation phase, you make regular payments that grow with compound interest.
Types of annuities
Ordinary annuity: payments at period end. Annuity due: payments at period start (generates slightly more). Also fixed, variable, and indexed based on performance.
Important considerations
Annuities can have high fees and surrender periods. Compare costs and consider whether the income guarantee is worth the reduced flexibility.