Savings / Annuity Calculator
Future value, total contributions and earnings for recurring monthly deposits.
How it works
FV = PMT × ((1+i)ⁿ − 1) ÷ i, i = annual ÷ 12, n = years × 12
Fixed deposits each period (ordinary annuity). Unlike a lump sum, recurring deposits average the entry price over time.
Earnings = FV − total invested.
FAQ
Is dollar-cost averaging better?
Not necessarily. Recurring deposits reduce timing risk and smooth volatility; a lump sum often wins in steadily rising markets.
Worked example
Save 1,000/month at 6% (0.5%/month) for 10 years (120 payments):
FV = 1000 × ((1.005¹²⁰ − 1) ÷ 0.005) ≈ 163,880 — 120,000 contributed, about 44,000 of growth.
Notes and limitations
An ordinary annuity assumes deposits at month-end; an annuity-due (start of month) yields slightly more. Returns depend heavily on the final years, so de-risk as the goal approaches.