Annuity Rates Calculator – Calculate Your Annuity Payments Easily

Annuities are financial products that provide a steady stream of payments over a period of time, often used for retirement planning. Our Annuity Rates Calculator helps you determine the periodic annuity payments you will receive based on your investment amount, interest rate, time period, and payment frequency.

Whether you are planning for retirement, comparing annuity plans, or evaluating investment options, this calculator gives you quick and accurate results.

Formula for Periodic Annuity Payment

The formula to calculate the annuity payment is:

$PMT=\frac{P\times r}{1-(1+r{)}^{-n}}$

Where:

• $PMT$ = Periodic Annuity Payment
• $P$ = Present Value (Investment Amount)
• $r$ = Interest Rate per Period
• $n$ = Total Number of Periods

Formula for Total Payments Received

$\text{Total Payments}=PMT\times n$

Where:

• $PMT$ = Periodic Annuity Payment
• $n$ = Total Number of Periods

Formula for Total Interest Earned

$\text{Total Interest}=\text{Total Payments}-P$

Where:

• $P$ = Present Value (Investment Amount)

Example Calculation

Let’s assume the following inputs:

• Investment Amount (PPP) = $50,000
• Annual Interest Rate = 6%
• Years = 10
• Payment Frequency = Annual (1 payment per year)

Step 1: Find Interest Rate per Period

$r=\frac{6}{100}=0.06$

Step 2: Find Total Number of Periods

$n=10\times 1=10$

Step 3: Calculate Periodic Annuity Payment

$PMT=\frac{50,000\times 0.06}{1-(1+0.06{)}^{-10}}=6,793.40$

Step 4: Calculate Total Payments$$

$\text{Total Payments}=6,793.40\times 10=67,933.98$

Step 5: Calculate Total Interest Earned

$\text{Total Interest}=67,933.98-50,000=17,933.98$​​​​​​​

Final Results for Example

• Periodic Annuity Payment: $6,793.40
• Total Payments: $67,933.98
• Total Interest Earned: $17,933.98