Future Value Annuity Calculator: Your Money's Best Friend

What This Tool Does

This tool shows how your regular savings grow over time with compound interest. You can see the final amount, total deposits, interest earned, and an adjusted annual rate.

How to Use This Tool

Follow these steps:

1. Enter Your Payment Amount: Type the dollar amount you plan to save each period. For example, use 500 to save five hundred dollars each month.
2. Input the Annual Interest Rate: Type the percentage you expect to earn each year. Use the number only, such as 5 for a five percent rate.
3. Set the Investment Period: Type the number of years you want your money to grow. A longer period means more time for interest to add up.
4. Select Payment Frequency: Choose how often you make deposits. Options include daily, weekly, bi-weekly, monthly, quarterly, semi-annually, or annually.
5. Select Compounding Frequency: Choose how often interest is added. You can choose daily, weekly, monthly, quarterly, semi-annually, or annually.
6. Choose Payment Timing: Select if you make the payment at the end of the period (ordinary annuity) or at the beginning (annuity due).

Press the "Calculate Future Value" button to see the results. Press the "Clear" button to reset the fields.

Understanding the Output

Future Value: This is the total amount your savings will become over the set period.

Total Contributions: This shows the sum of all your deposits.

Total Interest Earned: This shows how much money you gain from interest.

Effective Annual Rate: This displays an adjusted annual rate that reflects the interest added over time.

Example Calculation

For instance, if you save $500 each month with a 5% yearly interest for 10 years, with interest added each month, the tool will show the final value, your total deposits, and interest earned. Note that this example is only one possibility.

Limitations and Special Notes

Make sure all entries are positive numbers. Interest rates can be 0 or higher.

The tool uses a consistent method to compute compound interest. Minor differences might appear if your numbers have many decimals.

Common Use Cases

• Plan your retirement savings.
• Estimate the outcome for regular investments.
• Compare different saving plans.

Related Financial Calculators

• Present Value Calculator
• Compound Interest Calculator
• Loan Payment Calculator
• Investment Return Calculator
• Retirement Savings Calculator

This tool helps you plan ahead. It shows clear numbers that you can use to adjust your savings plan. Try different inputs to see what fits your goals best.