Ordinary versus annuity due
Payments at the beginning of each period earn an extra period of interest when saving. During income withdrawals, earlier payments reduce the remaining interest-earning balance.
Planning
Annuity Calculator
Calculate annuity income, payout payments or future value. Compare ordinary and beginning-of-period payments, including a growing annuity.
First payout per period
$659.96
Total payments
$158,389.38
Interest earned
$58,389.38
Present value of payments
$100,000.00
Final balance
$0.00
Result comparison
First payout per period: $659.96First payout per period · $659.96
Total payments: $158,389.38Total payments · $158,389.38
Interest earned: $58,389.38Interest earned · $58,389.38
Present value of payments: $100,000.00Present value of payments · $100,000.00
Final balance: $0.00Final balance · $0.00
First payout per periodFinal balance
Hover, tap or focus a column to see its exact value.
Annuity payment schedule
Detailed values use the same assumptions as the summary above.
| Period | Payment | Interest | Balance |
|---|---|---|---|
| 1 | $659.96 | $416.67 | $99,756.71 |
| 2 | $659.96 | $415.65 | $99,512.41 |
| 3 | $659.96 | $414.64 | $99,267.09 |
| 4 | $659.96 | $413.61 | $99,020.74 |
| 5 | $659.96 | $412.59 | $98,773.38 |
| 6 | $659.96 | $411.56 | $98,524.98 |
| 7 | $659.96 | $410.52 | $98,275.54 |
| 8 | $659.96 | $409.48 | $98,025.07 |
| 9 | $659.96 | $408.44 | $97,773.55 |
| 10 | $659.96 | $407.39 | $97,520.98 |
| 11 | $659.96 | $406.34 | $97,267.36 |
| 12 | $659.96 | $405.28 | $97,012.69 |
This is a fixed-term financial annuity, not a life-insurance quote. Mortality, insurance guarantees, taxes and fees are not modeled.
Calculation method
Formula and method
r is the nominal annual rate divided by payments per year. Payment k grows by (1 + annual growth)^(k / frequency). For an ordinary annuity, t begins at 1; for an annuity due, it begins at 0.
Detailed guide
Plan annuity payments or savings
Choose income to find the first payment that exhausts a starting capital over the entered term. Choose savings to project a starting balance plus repeated contributions. Payment growth lets you model payouts or contributions that increase with time.
A payout of 10,000 each year for 10 years has a present value of 100,000 at a zero rate. At a positive rate, the same capital supports higher level payments. Beginning-of-period payouts are smaller because money leaves the account sooner.
Formula and method
PV = Σ paymentₖ / (1+r)^t; first payout = capital / Σ growthₖ / (1+r)^t
r is the nominal annual rate divided by payments per year. Payment k grows by (1 + annual growth)^(k / frequency). For an ordinary annuity, t begins at 1; for an annuity due, it begins at 0.
For level end-of-period contributions, future value is P(1+r)^n + C((1+r)^n−1)/r. At zero rate, use P + Cn. The schedule handles growing payments directly, including equal interest and growth rates.
Using the results
Growing payments
An annual growth assumption changes payments smoothly at each payment period. It does not represent a contract that steps up once a year.
Frequently asked questions
Can I calculate a growing annuity?
Yes. Enter a nonzero annual payment growth rate. The first payout is adjusted so the growing withdrawals use the capital over the full term.
Does this quote a lifetime annuity?
No. It models a known term and entered rate. A lifetime insurance product also depends on mortality assumptions, insurer charges and contract guarantees.
What happens at a zero interest rate?
Level payout equals capital divided by the number of payments. Savings equal starting capital plus all contributions.
Updated: October 1, 2026
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