You enter the payment amount, annual interest rate, number of periods, payment frequency, and whether payments occur at the end (ordinary) or beginning (due) of each period. The tool converts the annual rate to a per-period rate, then applies the standard present-value and future-value annuity formulas. For annuities due, both values are multiplied by (1 + i) to account for the extra compounding period. This models a pure time-value-of-money annuity, not an insurance product.
An ordinary annuity makes payments at the end of each period (most loans and bonds work this way). An annuity due makes payments at the beginning (rent and insurance premiums are common examples). Due annuities are worth slightly more because each payment earns one extra period of interest.
Use present value when you want to know what a stream of future payments is worth today — for example, comparing a pension lump-sum offer to monthly checks. Use future value to project how much a series of regular savings deposits will grow to over time.
No. This calculator models a mathematical annuity — a series of equal payments at fixed intervals. Insurance annuities add mortality credits, surrender charges, fees, and guarantees that materially change the economics. Always compare a product contract's actual terms.
Use the rate that matches your scenario: the discount rate for valuing future cash flows, the expected return for savings projections, or the quoted rate on an annuity product. Make sure the rate aligns with the payment frequency you selected.
Estimate only. Results reflect your inputs and standard formulas — they are not financial, tax, legal, health, or investment advice. Verify important decisions with a qualified professional.