Future Value of Ordinary Annuity Calculator: Plan Your Financial Growth
This JavaScript calculator lets you project the lump sum created when you deposit the same amount at the end of each year and earn compound interest. Enter the yearly payment, a decimal rate, and years; it instantly applies $$FV = PMT times frc{(1+r)^n - 1}{r}$$ to show your future value. A $2,000 annual deposit earning 5 % for 20 years grows to $66,400—over three times the cash you put in (U.S. SEC compound-interest chart, 2023).
Future Value of an Ordinary Annuity Calculator
Future Value:
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How to use the tool
Payment (USD): type your regular deposit, e.g. 1 500 or 3 250.
Interest rate (decimal): enter the annual rate like 0.045 or 0.08.
Number of years: choose your saving horizon such as 8 or 30.
Press Calculate; the result instantly appears below the form.
Underlying formula
The calculator applies the ordinary-annuity formula:
$$
FV = PMT \times \frc{(1+r)^n – 1}{r}
$$
PMT – equal yearly payment
r – annual interest rate (decimal)
n – total payments (years)
Example calculations
Example A — Medium-term goal
Deposit $1 800 each year for 15 years at 6 % (0.06).
The formula assumes payments at the end of each period —an ordinary annuity (Corporate Finance Institute, 2023).
Average S&P 500 annualised return ≈ 10 % since 1926 (J.P. Morgan Guide to the Markets, 2023).
Experts suggest saving 10 – 15 % of income for retirement (Investopedia, 2024).
Compound interest “makes your money earn money on the money it earns” (U.S. SEC, Investor.gov).
FAQ
What is an ordinary annuity?
An ordinary annuity pays or receives equal amounts at each period’s end, unlike an annuity-due that pays at the start (CFI, 2023).
Why must the rate be a decimal?
Using a decimal (0.07 instead of 7 %) lets the formula treat the rate as a multiplier directly in calculations.
Can I model monthly deposits?
Yes—divide the annual rate by 12 and multiply years by 12 to convert r and n to monthly periods (SEC, Investor.gov).
Does the calculator include taxes or fees?
No, it shows gross growth; subtract taxes, fund fees, or inflation separately for net projections.
How does interest rate affect growth?
Higher r exponentially increases FV because every payment compounds at the new, larger base (Bodie et al., “Investments” 2021).
What happens if r = 0?
With no interest you simply sum the payments: FV = PMT × n; the tool rejects r ≤ 0 to avoid division by zero.
Is my data stored?
All calculations run locally in your browser; no inputs leave your device.
Who should use this tool?
Savers, investors, students, and planners forecasting retirement, college funds, or any goal funded by steady contributions.
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