Future Value Annuity Payment
Calculator to Achieve Savings Goal

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Help you to see the regular deposit you would need to start making now to grow a present lump sum to meet a future savings goal.

This free online Future Value Annuity Payment Calculator will calculate the future value of a lump sum you have in an interest earning account, and then calculate the periodic annuity payment needed to make up the difference between that and your future savings goal.

Plus, unlike many other online annuity calculators, this calculator will calculate annuity payments for either an ordinary annuity, or an annuity due, and display a year-to-year growth schedule so you can see how the present value of your account -- when combined with your annuity payments -- will grow to achieve your future savings goal.

If you're not sure what future value is, or you wish to calculate future value for a lump sum, please visit the Future Value of Lump Sum Calculator.

Or, if you're not sure what an annuity is, or you wish to calculate future value for a series of cash flows, please visit the Future Value of an Annuity Calculator.

Combining Two Future Value Calculations

In order to determine if the amount you currently have in an interest earning account will be enough to meet a future savings goal, you would need to use future value of a lump sum calculations. If it turns out that the future value of your lump sum balance is enough to achieve the goal, no further calculations would be necessary.

On the other hand, if the future value of your current balance turns out to be less than your future savings goal (referred to as a savings gap), you would then need to use the future value of an annuity calculation to calculate how much and how often you would need to add to the account in order to make up for the shortfall.

What is "Future Value of an Annuity Factor?"

For our purposes, the future value of an annuity factor is equal to the future value of a series of $1 deposits, which is calculated as follows:

Future value of series of $1 deposits = (1 + r)n, where r is the decimal equivalent of the interest rate and n is the number of periods.

For example, for a series of $1 deposits made at the end of each year into an account earning 8% annual interest for a period of 10 years, the annuity factor would be equal to (1 + .08) to the 10th power (1.08 x 1.08 x 1.08 ...), or 14.487.

Closing the Savings Gap

Once you have determined the gap between the future value of your present savings balance and your future savings goal, and you have calculated the future value of an annuity factor, all that remains is to divide the savings gap by the annuity factor. The result is the periodic annuity payment required to close the savings gap, thereby enabling you to achieve your future savings goal.

With that, let's use the Future Value Annuity Payment Calculator to calculate the savings gap, annuity factor, and required periodic annuity payment related to achieving your future savings goal.

Future Value Annuity Payment Calculator
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Instructions: Select either "Annuity Due" or "Ordinary Annuity".

Next, enter the future value you wish to achieve and the number of years within which to achieve it.

Next, enter the present value of your interest bearing account (if any) and the annual interest rate the account is (or will be) earning.

Finally, choose your preferred payment/deposit frequency and then click the "Calculate Annuity Payment to Achieve Future Value" button.

Mouse over the blue question marks for a further explanation of each entry field. More in-depth explanations can be found in the glossary of terms located beneath the Future Value Annuity Payment Calculator.

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Help Annuity type:
Help Future value or savings goal:
Help Years to achieve future value or savings goal (#):
Help Present value or current savings:
Help Annual interest rate (%):
Help Preferred payment (saving deposit) interval:
Help Future value of current lump sum:
Help Future value shortfall (savings gap):
Help Annuity factor:
Help Annuity payment needed to eliminate shortfall:
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Future Value Annuity Payment Calculator Glossary of Terms

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Annuity type: Select the type of annuity. An Annuity Due indicates payments are made at the beginning of each period, whereas an Ordinary Annuity indicates payments are made at the end of each period.

Future value or savings goal: Enter the lump sum amount you currently have in an interest earning account. If none, leave blank or enter a zero.

Years to achieve future value or savings goal: Enter the number of years within which you would like to achieve your savings goal.

Present value or current savings: Enter the lump sum amount you currently have in an interest bearing account. If none, leave blank or enter a zero.

Annual interest rate: Enter the annual interest rate to be used for the future value calculations. Please enter as a percentage (for .06, enter 6%). Note that the future value annuity payment calculator will convert the annual interest rate to the rate that corresponds to the payment frequency. For example, if you selected a monthly payment frequency, the future value annuity payment calculator will divide the annual rate by 12 and compound the interest accordingly.

Preferred payment (saving deposit) interval: Select the interval you would prefer for making the calculated annuity payments.

Future value of current lump sum: Based on your entries, this is the future value of the current balance of your interest earning account.

Future value shortfall (savings gap): Based on your entries, this is difference between the future value of the current balance in your account and your savings goal. The future value annuity payment calculator will use this figure to calculate the periodic payment/deposit needed to make up for the shortfall.

Annuity factor: Based on your entries, this is the future value of an annuity factor for a series of $1 deposits made into an account earning the entered interest rate, and for the entered number of payment periods. The future value annuity payment calculator divides the savings gap by this factor in order to arrive at the periodic annuity payment needed to bridge the savings gap.

Annuity payment needed to fund shortfall: Based on your entries, this is the periodic payment/deposit you will need to make into your account in order to achieve your savings goal within the desired time frame.

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