- vCalc Catalog Home
- Future Value (Ordinary Annuity)

# Future Value (Ordinary Annuity)

vCalc.Future Value (Ordinary Annuity)

The **Future Value of an Ordinary Annuity** calculator computes the future value (FV) of a fixed rate annuity based on a regular annuity payment, a fixed rate of return and a number of periods.

**INSTRUCTIONS:** Choose units and enter the following:

- (
**PMT**) regular annuity payment - (
**r**) fixed interest rate of return period - (
**t**) number of periods defining the duration.

**Future Value (FV):** The calculator returns the Future Value in U.S. dollars. However, this can be automatically converted into other currency units (e.g Canadian Dollars) via the pull-down menu.

#### The Math / Science

The formula for the future value of an ordinary annuity is:

`FV=PMT * ( ((1+r)^t)/r − 1/r)`

where:

- FV = Future Value
- PMT = regular annuity payment
- r = percent rate of return per period
- t = number of periods.

This formula calculates the future lump-sum value of of an annuity paid in fixed payments (**PMT**) based on a fixed interest rate (**r**) over a number of payments (**t**). This formula could help an investor decide if they should accept a fixed payment of $20 each month for two years or $500 in a lump sum at the end of the two year period.

#### Personal Finance Equations:

**Annualized Amortization**- computes the monthly payment of a fixed interest rate loan (e.g. home mortgage).**Credit Card Equation**- computes the number of months to pay off a credit card.**Leverage Ratio**- calculates a ratio describing debt to income.**Cash Flow**- calculates the difference between income an expenses**Compound Interest**- computes the compounded interest on a fixed interest rate investment**CAGR**- computes the compounded annual growth rate achieved on an investment.**Present Value**- computes the present value of a fixed annuity.**Future Value**- computes the future value of a fixed annuity.**Rule of 72**- provides a quick estimate on time to double an investment**Simple Interest Earned**- a rough estimate on interest earned over time.- Monthly Payment - Monthly payments including property taxes and insurance.
- Year 1 Interest- Interest paid on a loan or mortgage in the first year.
- Total Payments - Cumulative cost of a loan including principle and interest.
- Future Value of Annuity
- Present Value (Ordinary Annuity)

#### External Links

**Future Value (Ordinary Annuity)**, is used in 1 calculator.

**Calculators**