Ordinary Annuity Calculator
End-of-period annuity — the standard timing.
Calculator
Results
FV of Ordinary Annuity
$13,180.79
$10,000.00
$3,180.79
Live results update as you type — currently showing fv of ordinary annuity of $13,180.79. Replace the defaults with your own numbers.
Visualizations
Growth Split
Formula
End-of-period compounding workhorse.
Variables
| Symbol | Name | Unit | Description |
|---|---|---|---|
| PMT | Payment | $ | End of period |
Explanation
Standard savings/loan timing.
Step-by-Step Calculation
Follow each step to understand how the result is calculated from your inputs.
FV = PMT × ((1+r)^n − 1) / r
Worked Examples
See how the calculator works with different scenarios.
Scenario
The ordinary annuity calculator run on the values above.
Inputs
Calculation
1. FV = PMT × ((1+r)^n − 1) / r → $13,180.79
Result
FV of Ordinary Annuity: $13,180.79
Interpretation
$13,180.79 from $1,000.00 × 10 at 6.00%.
Understanding Your Result
Your Result: FV of Ordinary Annuity: $13,180.79
What This Means
Standard savings/loan timing.
Why It Matters
$13,180.79 from $1,000.00 × 10 at 6.00%.
Professional Interpretation
$13,180.79 from $1,000.00 × 10 at 6.00%.
How this is calculated
End-of-period compounding workhorse.
What drives the result
Compounding grows lump sums and streams forward; discounting shrinks them back. The rate is the exchange rate between today and tomorrow.
Recommendations
- •Start early — compounding dominates late periods.
- •Annuity-due adds one extra compounding per payment.
Educational Content
Introduction
Money has a time price: a dollar today compounds forward and discounts backward. Annuities package that into streams, NPV/IRR judge projects, and DCF prices whole firms.
Concept Explanation
Compounding grows lump sums and streams forward; discounting shrinks them back. The rate is the exchange rate between today and tomorrow.
Applications
Benefits
- •Comparable across timing
- •Rate-explicit decisions
- •Value linked to cash, not accounting
Limitations
- •Constant-rate simplifications
- •Even-flow shortcuts where noted
- •Forecasts dominate DCF truth
Best Practices
- •Match rate frequency to cash frequency
- •Show ranges for DCF/IRR
- •Annualize before comparing
Common Misconceptions
Practical Tips
- •Default unless stated due.
Common Mistakes
Assumptions
This calculator makes the following assumptions to provide estimates:
Limitations
Be aware of these limitations when using this calculator:
Frequently Asked Questions
Answers to common questions about this calculator.
Examples?
How accurate is the ordinary annuity calculator?
Ordinary vs due?
Nominal vs effective?
Related Guides
Deepen your understanding with these educational resources.
Glossary
Technical terms used in mortgage calculations explained in plain language.
- Annuity
- Equal payments each period for a fixed term.
Authoritative References
Trusted sources and standards referenced by this calculator.
Applicable Standards
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Page Information
2026-09-23
2.0.0
Free to use for educational and professional purposes.