Annuity-Payment (FV)

The Annuity-Payment based on Future Value calculator computes the regular payments (P) that need to be made into a fixed rated (r) annuity over a number of periods (n) to achieve a future value (FV).

INSTRUCTIONS: Choose the preferred currency units and enter the following:

• (FV) This is the desired future value of the annuity.
• (r) This is the fixed interest rate.
• (n) This is the number of periods.

Payment: The calculator returns the required periodic payments in U.S. dollars.  However, this can be automatically converted to other currency units via the pull-down menu.

The Math / Science

The annuity-payment based on Future Value formula is used to calculate the cash flows of an annuity when the future value is known, as opposed to the annuity payment formula used when present value is known.

• FV = Future Value
• r = rate per period
• n= number of periods

Example:
A person wants to buy a $50,000 yacht in 10 years, and they find a guaranteed annuity that pays three percent annually for monthly contributions.  Therefore,

• FV is $50,000
• r is 3%/12 or 0.25% per month.
• n is 120 payments (monthly for 10 years).

The payment (P) is $357.80.