This **annuity calculator** calculates the annual contribution or payment needed assuming you know the future value wanted and annual interest rate that you will earn on your contribution amounts. Assumes payments are made at the end of each period.

Example:

Let’s say you know you need $1,600,000 at retirement. You plan to contribute only for 25 years and believe you can earn an annual rate of 5% on your money. How much do you need to contribute each year to obtain this $1,6 million?

## Definitions

**Annual Contribution** is the amount in dollars (and cents) that you plan to contribute each year, at the end of the year. This value will be calculated.

**Annuity Value** is the future value you want to attain. In the above example, it’s $1.6 million dollars. Type 1600000 in the calculator below.

**Annual interest rate** is the rate of interest per year that you estimate to make or earn. From the example above, if you expect a 5% rate of return, then type, 5. Only type up to 2 decimals.

**Years of Compounding** is the number of years you expect to contribute and is equal to the number of payments you plan to make. Example: If you plan to contribute for 25 years, then type, 25.

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