Future Value of Annuity Due Calculator
Compute the future value of an annuity due — equal deposits made at the start of each period — and compare it with end-of-period saving.
How it works
FV(due) = PMT · [(1 + i)^n − 1] / i · (1 + i)
When deposits are made at the beginning of each period, every contribution earns interest for one extra period compared with end-of-period saving. The result is again exactly (1 + i) times the ordinary-annuity future value. This is why paying into a retirement or savings plan at the start of the month, rather than the end, leaves you slightly better off over time.
Worked example
Depositing $1,000 at the start of each year for 10 years at 5% first gives the ordinary FV = 1,000 · [1.05^10 − 1] / 0.05 = $12,577.89. Multiplying by 1.05 gives the annuity-due FV = $13,206.79 — about $629 more from timing alone.
Sources: Annuity (finance theory) — Wikipedia
Frequently asked questions
How much does start-of-period saving add?
It multiplies the end-of-period future value by (1 + i). At 5% that is a 5% boost to the interest-driven growth, purely from each deposit compounding one period longer.
Is a monthly savings plan an annuity due?
It depends on timing. If you contribute at the beginning of each month it behaves like an annuity due; if the contribution posts at month end it is an ordinary annuity. Automatic payroll deductions are often closer to annuities due.
What rate should I enter for monthly deposits?
Use the rate per period. For monthly deposits at a 6% annual nominal rate, enter 0.5% per period and set the number of deposits to the number of months.
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Educational financial-math tool, not investment or financial advice.