An annuity calculator computes the future value of regular equal payments made at a fixed interest rate over a set number of periods.
About this calculator
An annuity calculator computes the future value of regular equal payments made at a fixed interest rate over a set number of periods. Annuities are used in retirement planning, pension calculations, and any scenario where you make or receive a series of equal payments.
Understanding annuity math lets you evaluate insurance products, pension plans, and retirement income strategies.
Common uses
- Calculate the future value of a pension or retirement annuity
- Compare fixed annuity rates across insurance providers
- Determine how much a monthly payment of ₹10,000 grows over 20 years
- Plan systematic withdrawal rates for retirement income
Frequently asked questions
What is the difference between an ordinary annuity and an annuity due?
An ordinary annuity makes payments at the end of each period (like most loan repayments). An annuity due makes payments at the beginning of each period (like rent or insurance premiums). Annuity due has a slightly higher future value because each payment compounds for one extra period.
How is annuity different from SIP?
SIP typically refers to investing in mutual funds with variable returns tied to market performance. An annuity offers a guaranteed, fixed rate of return, usually offered by insurance companies. SIPs tend to generate higher long-term returns but with more volatility.