What this calculator does
Annuity due vs ordinary annuity works out how payment timing (start vs end of period) changes an annuity’s value. Enter your own figures above and the answer updates as you type: nothing is fixed in the code, so the result reflects exactly the numbers you supply.
The formula this calculator evaluates is printed under the tool and explained below, so you can check the working by hand or reuse it in a spreadsheet.
The formula
FormulaOrdinary annuity: FV = PMT·[(1+i)^n − 1]/i, PV = PMT·[1 − (1+i)^−n]/i. Annuity due: multiply both by (1+i)
The inputs explained
| Field | What to enter |
|---|---|
| Payment per period ($) | A number, measured in your currency. Starts at 1000. |
| Interest rate per period (%) | A number, measured in %. Starts at 5. |
| Number of periods | A number. Starts at 10. |
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How the answer changes with payment per period
Every other input is held at the calculator’s starting values while payment per period varies. Select any row to load that scenario into the calculator.
How the answer changes with payment per period
| Payment per period ($) | Future value, annuity due | Future value, ordinary annuity | Present value, annuity due |
|---|---|---|---|
| 500 | $6,603.39 | $6,288.95 | $4,053.91 |
| 750 | $9,905.09 | $9,433.42 | $6,080.87 |
| 1,000 | $13,206.79 | $12,577.89 | $8,107.82 |
| 1,500 | $19,810.18 | $18,866.84 | $12,161.73 |
| 2,000 | $26,413.57 | $25,155.79 | $16,215.64 |
| 3,000 | $39,620.36 | $37,733.68 | $24,323.47 |