What this calculator shows you
- Flexible Contributions
- Add annual and monthly contributions separately
- Timing Options
- Choose beginning (annuity due) or end (ordinary annuity) timing
- Accumulation Schedule
- View year-by-year or month-by-month growth breakdown
- Instant Results
- See future value, interest earned, and total contributions
What is an Annuity?
An annuity is a series of equal payments made at regular intervals. The two main types are ordinary annuity (payments at the end of each period) and annuity due (payments at the beginning). Understanding these distinctions is crucial for accurate financial planning.
Annuity Due vs Ordinary Annuity
With an annuity due, payments are made at the beginning of each period, so each payment has one extra period to earn interest. This results in a higher future value compared to an ordinary annuity with the same payments, rate, and duration.
The Power of Regular Contributions
Even small regular contributions can grow significantly over time due to compound interest. The key factors are: the contribution amount, the interest rate, the time period, and when contributions are made (beginning vs end of period).
Using the Accumulation Schedule
The accumulation schedule shows you exactly how your money grows each year or month. It breaks down your additions, the return earned, and the ending balance—helping you visualize your wealth-building journey.
Questions people ask
What is the difference between annuity due and ordinary annuity?
Annuity due makes payments at the beginning of each period (like rent or insurance premiums), while ordinary annuity makes payments at the end (like loan payments). Annuity due grows slightly more because each payment has an extra period to earn interest.
What growth rate should I use?
The growth rate depends on your investment. Conservative fixed annuities might offer 3-5%, while variable annuities in stock funds historically average 7-10%. Use a rate that reflects your actual investment allocation.
Should I make monthly or annual contributions?
More frequent contributions generally result in slightly higher returns due to compounding. Monthly contributions also align better with most peoples cash flow. However, the difference is often small—consistency matters more than frequency.
Education only, not personalized financial, tax or investment advice. Results are estimates based on the numbers you enter; real returns vary and losses happen.