Annuity Future Value Calculator

Finance

The Annuity Future Value Calculator shows how much a series of regular deposits will grow to by the end of a saving period, with compound interest. Enter how much you save each month, the annual interest rate, and the number of years. The formula used is: FV = PMT × [((1 + r)ⁿ − 1) ÷ r], where r is the monthly rate and n is the number of months.

Formula

FV = PMT × [((1 + r)ⁿ − 1) ÷ r]
  • The Annuity Future Value Calculator updates instantly when you change any value.
  • Formula: FV = PMT × [((1 + r)ⁿ − 1) ÷ r]
  • Input definitions: • Monthly Deposit: the amount you add each month • Annual Rate %: the yearly interest rate (divided by 12 for the monthly rate r) • Years: the saving period (multiplied by 12 for the number of months n)
  • This assumes an ordinary annuity, where each deposit is made at the end of the month and earns interest from then on.
  • Interest earned is the future value minus everything you deposited.
  • Practical tip: increasing the monthly deposit or the number of years has a compounding effect on the final balance.

Example Calculation

Inputs
  • Monthly Deposit (PKR): 10000
  • Annual Rate %: 5
  • Years: 10

Saving PKR 10,000 a month for 10 years at 5% annual interest grows to about PKR 1,552,823. You deposit PKR 1,200,000 in total, so roughly PKR 352,823 is compound interest.

Frequently asked questions

What is the future value of an annuity?
It is the total amount a series of equal, regular deposits will be worth at the end of the saving period once compound interest is added.
What is an ordinary annuity?
An ordinary annuity makes each payment at the end of the period. This calculator uses that convention with monthly deposits.
How is interest earned calculated?
Subtract your total deposits (monthly amount × number of months) from the future value to see how much came from interest.
What rate should I enter?
Enter the annual interest rate as a plain number (for example 5 for 5%). The calculator converts it to a monthly rate internally.
Does this account for inflation or tax?
No. The result is a nominal future value before inflation and tax. Consider those separately when planning.