An annuity is a series of regular payments, such as monthly contributions to a pension, insurance or retirement plan. This calculator shows how those payments grow with compounding.

Why should I start contributing early?

Each rupee you contribute earns returns that then earn their own returns. Over long periods, compounding can contribute more to your final balance than your contributions themselves.

Annuity Calculator

Future value of regular annuity contributions with compounding.

Annuity Details

Initial Lump Sum

Monthly Contribution

Annual Return

Years of Contributions

yrs

Annuity Future Value

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Total Contributions

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Interest Earned

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Effective Annual Rate

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How annuity growth works

Every month your contribution joins the fund and the whole balance earns the monthly equivalent of the annual return. Over 20 years, compounding turns regular payments into a fund far larger than the total you put in — the interest earned column shows that bonus.

Annuity FAQ

What return should I assume for planning?▶

For a balanced retirement portfolio, 7-9% nominal is a reasonable long-term planning figure in India. Use a lower rate to be conservative.

What is the difference between an annuity and an annuity payout?▶

An annuity builds up a fund through regular contributions. An annuity payout draws down a lump sum into regular income — try the Annuity Payout Calculator for that phase.