Annuity Calculator
Enter a monthly payment, a yearly rate and the years to find the annuity value.
This result is an estimate only. Check with your bank or the relevant authority before making decisions.
How it is calculated
- Monthly rate i = yearly rate ÷ 12, and n = years × 12
- Future value = payment × ((1 + i)^n − 1) ÷ i
- Present value = future value ÷ (1 + i)^n
- For payments at the start, multiply by (1 + i)
For a single lump sum, see the future value calculator.
Worked example
RM1,000 a month at 6% a year for 10 years, paid at the end of each month:
- Future value = RM163,879.35
- Present value = RM90,073.45
- Total paid in = RM120,000
Why your number may differ
Fund returns are not steady, and fees and tax reduce growth. Payments that change over time are not modelled.
Frequently asked questions
What is an annuity?
A series of equal payments made at regular intervals. Saving RM500 a month, or receiving a pension, are both annuities.
What is the difference between future and present value?
Future value is what the payments grow to at the end. Present value is what the whole series is worth today, discounted at the same rate.
What does payment at the start of the month change?
Each payment earns one more month of interest, so the value is higher by a factor of (1 + monthly rate). This is called an annuity due.