Ordinary Annuity Calculator
Calculate future value, present value, and payments. Payments occur at the END of each period.
Ordinary Annuity Calculator
Calculate FV, PV, Payment, or Number of Periods for ordinary annuities
Understanding Ordinary Annuities
What is an Ordinary Annuity?
An ordinary annuity is a series of equal payments made at the END of each consecutive period. Examples include most loan payments, bond coupon payments, and many retirement withdrawals. The timing of payments affects the total value significantly.
Future Value (FV)
- How much your payments will grow to
- Includes all accumulated interest
- Use for retirement planning
- Formula: FV = PMT × [(1+r)^n - 1] / r
Present Value (PV)
- Today's value of future payments
- Discounted at the interest rate
- Use to compare payment streams
- Formula: PV = PMT × [1 - (1+r)^-n] / r
Ordinary vs Annuity Due
- Ordinary: Payments at period END
- Annuity Due: Payments at period START
- Annuity Due earns more interest
- Due values = Ordinary × (1 + r)