Annuity Payment Calculator

Estimate periodic annuity payments from present value, interest rate, term, and payment frequency, including ordinary annuity and annuity due.

828.8K uses Updated · 2026-05-14 Runs locally · zero upload
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The Annuity Payment Calculator computes the periodic payment required to pay off (or be paid out by) an annuity given a present value, an annual interest rate, a term, and a payment frequency. It supports both ordinary annuities (end of period) and annuities due (beginning of period), making it suitable for loans, retirement payouts, and structured settlements.

How to Use Annuity Payment Calculator

  1. Enter the present value (loan principal or current annuity value).
  2. Provide the annual interest rate as a percentage.
  3. Select the term in years and choose how often payments occur.
  4. Pick the payment timing — end of period for typical loans, beginning of period for many annuity payouts.
  5. Review the periodic payment, total paid, and total interest.

Formula & Theory - Annuity Payment Calculator

PMT = PV × i / (1 - (1 + i)^-n)              // ordinary annuity
PMT_due = PMT_ordinary / (1 + i)             // annuity due
where i = annual_rate / frequency, n = years × frequency

Use Cases for Annuity Payment Calculator

  • Estimate monthly mortgage or auto-loan payments.
  • Model retirement withdrawals from an annuity contract.
  • Compare ordinary annuity vs annuity due options offered by an insurer.
  • Build amortization schedules for personal financial planning.

Frequently asked questions about Annuity Payment Calculator

What is the difference between ordinary annuity and annuity due?

Ordinary annuities pay at the end of each period (typical for loans). Annuities due pay at the beginning of each period and produce slightly higher present values because each payment earns one extra period of interest.

Does the calculator account for taxes or fees?

No. It returns the contractual payment based on rate, term, and present value. Taxes, insurance, and platform fees should be modeled separately.

Can I use it for a 0% interest rate?

Yes. When the rate is 0%, the payment simply equals present value divided by the number of periods.

Is my data stored?

No. All calculations run in your browser and nothing is uploaded or saved.