📈 Time Value of Money (TVM)
Future Value Annuity Calculator
Calculate the accumulated future worth of regular periodic cash deposits for Ordinary Annuities and Annuities Due with compounding interest.
Annuity Terms & Cash Flow
Future Value (FV) of Annuity
$86,542
Total Contributions
$60,000
Compound Interest
$26,542
Growth Multiplier
1.44x
💡 TVM Annuity Takeaway:
By investing $500 / month over 10 years at 7.0% interest, compound growth contributes $26,542 in free interest, representing 30.7% of your total ending portfolio.
Mathematical Formula for Annuities
The Future Value of an Ordinary Annuity ($FV_{\text{ordinary}}$) is calculated using the formula:
$$FV_{\text{ordinary}} = PMT \times \left[ \frac{(1 + r)^n - 1}{r} \right]$$
For an Annuity Due, payments are made at the beginning of each cycle, multiplying the entire result by $(1 + r)$:
$$FV_{\text{due}} = FV_{\text{ordinary}} \times (1 + r)$$