# Annuity Calculator

> Calculate the future value, present value, total contributions, and interest earned on an ordinary annuity with recurring payments.

**URL:** https://www.calculatoranswers.com/annuity-calculator
**Category:** Money

## Quick Answer

Calculate the future value and present value of an ordinary annuity. Enter the recurring payment amount, interest rate, number of years, and payment frequency.

## Definition

An annuity calculator is a financial mathematics utility designed to compute the present value and future value of a series of equal periodic payments made over a specified duration. An ordinary annuity assumes payments are made at the end of each compounding period (such as monthly or annually). The future value calculation demonstrates the wealth accumulated over time through compound interest, while the present value calculation determines the lump sum equivalent needed today to fund that stream of future payments. Retirees and investors use this calculator to plan structured payouts and evaluate investment contracts.

## How to Use

1. **Enter payment details** — Type the recurring payment amount and select the frequency (e.g. monthly or annually).
2. **Set term and interest rate** — Specify the number of years and the expected annual interest rate (APR).
3. **Review future & present value** — Read the future value (accumulated balance), present value (current lump sum equivalent), total contributions, and interest earned.

## Disclaimer

This calculator provides estimates for educational and planning purposes. Always consult a qualified professional for specific advice on financial, medical, legal, or other regulated decisions.

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