This future value of annuity due calculator works out the future value (FV) of a regular sum of money (Pmt) received at the start of each of n periods, using a discount rate i.
An annuity due involves a series of equal payments made at regular intervals, with the first payment occurring immediately at the start of the annuity. The future value of an annuity due is a calculation that determines the total value of the annuity at a future point in time, taking into account factors such as interest rates and the length of the annuity.
FV Annuity Due Formula
The calculator uses the FV of annuity due formula as shown below:
FV = Pmt x (1 + i) x ( (1 + i)n - 1 ) / i
Future Value of Annuity Due Calculator Instructions
The Excel future value of annuity due calculator is available for download below. The calculator is used to compute the future value by entering details relating to the regular payment, discount rate and the number of periods.
Accordingly the calculator is used as follows.
Step 1(Pmt)
Firstly enter the regular payment amount (Pmt). The regular payment is the amount received at the end of each period for n periods. The amount must be the same for each period.
Step 2 (i)
Secondly enter the discount rate (i). The discount rate is the rate used to discount each payment amount back from the end of the period in which is was made, to the beginning of period 1 (today). The rate should be for a period, so for example, if the period is a year, then the rate should be the yearly rate.
Step 3 (n)
Thirdly enter the number of periods (n). The number of periods is entered. A period can be any term (month, year etc), but must be consistent with the discount rate (i) provided.
Step 4 (FV)
Finally the future value of annuity due calculator works out the future value (FV). The answer is the value at the end of period n of an a regular sum of money received at the start of each of the n periods, at a discount rate of i. It is the future value of an annuity due.
Future Value of Annuity Due Calculator Download
The FV of annuity due calculator spreadsheet is available for download in Excel format by following the link below.
The FV of annuity due calculator is one type of tvm calculator used in time value of money calculations. Discover another at the links below.
Users use this free annuity calculator at their own risk. We make no warranty or representation as to its accuracy. Additionally we are covered by the terms of our legal disclaimer, which you are deemed to have read. This is an example of a FV of an annuity due calculator that you might use when considering how to calculate the FV of an annuity due. It is purely illustrative of a FV of annuity due calculator. Furthermore this is not intended to reflect general standards or targets for any particular business, company or sector. If you do spot a mistake in this FV annuity due calculator, please let us know and we will try to fix it.
About the Author
Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University.