How this timing comparison works
The calculator runs the same payment amount, rate, term and frequency twice: once as an ordinary annuity and once as an annuity due. In present-value mode, it compares what the payment stream is worth today. In future-value mode, it compares what the same payments may grow to by the end of the term.
Ordinary annuity vs annuity due
Ordinary annuity means payments happen at the end of each period. Annuity due means payments happen at the beginning of each period. Timing matters because beginning-of-period payments are discounted for less time in a present-value estimate, or have more time to earn interest in a future-value estimate.
What this does not include
This calculator provides a general estimate using simplified annuity maths. It is not a quote for a lifetime annuity or insurance product. It does not include insurer pricing, mortality assumptions, rider costs, surrender charges unless entered, taxes, inflation adjustments, commissions, product-specific caps, participation rates, state rules, or personal financial advice.
Key terms and assumptionsPayment amount, present-value mode, future-value mode, ordinary annuity timing, annuity due timing and estimate limits.
- Payment amount
- Payment amount is treated as the same fixed amount in every selected period.
- Comparison mode
- Present-value mode discounts future payments to today. Future-value mode estimates how payments may grow to the end of the term.
- Annual rate
- The annual interest or discount rate is treated as a fixed assumption and divided by the payment frequency for the periodic rate.
- Payment frequency
- Monthly, quarterly, semiannual and annual frequencies are supported. Frequency determines the number of payments and periodic rate.
- Ordinary annuity
- Ordinary annuity timing assumes each payment happens at the end of the period.
- Annuity due
- Annuity due timing assumes each payment happens at the beginning of the period.
- General estimate
- This calculator uses simplified fixed-term annuity maths and excludes insurance pricing, mortality assumptions, taxes, fees, inflation and personal financial advice.
Guides and methodology
Plain-English notes that explain the assumptions behind related calculators and tools.
Related calculators
Browse the Money calculators hub for annuity payout, present value, future value, compound growth and retirement calculators.
- Annuity Payout Calculator Estimate fixed-term annuity-style payments from a lump sum using interest rate, term, payment frequency, timing and optional residual value.
- Annuity Present Value Calculator Estimate the present value of a fixed stream of future payments using a discount rate, payment frequency and annuity timing.
- Annuity Future Value Calculator Estimate how regular contributions may grow over time using a simple interest-rate assumption, frequency and timing.
- Compound Interest Calculator Estimate compound growth, ending balance, total contributions and interest earned from a starting amount, recurring contributions, return and years.
- Retirement Savings Calculator Estimate future retirement savings, inflation-adjusted value, personal contributions, employer contributions and estimated growth.
- Savings Goal Calculator Estimate how long it may take to reach a savings goal, or the monthly contribution needed by a target date, with optional APY.
- Budget Calculator Add income and expenses to estimate monthly surplus or shortfall, savings rate and category breakdown without connecting accounts.
- Loan Payoff Calculator Estimate payoff time, total interest and interest saved for a generic loan with optional extra payments.
FAQs
What does this annuity timing calculator compare?
It compares the value of the same fixed payments when payments happen at the end of each period versus the beginning of each period.
What is an ordinary annuity?
An ordinary annuity assumes each payment happens at the end of the period, such as the end of a month, quarter or year.
What is an annuity due?
An annuity due assumes each payment happens at the beginning of the period, such as the beginning of a month, quarter or year.
Why does payment timing change the value?
Beginning-of-period payments are discounted for less time in a present-value estimate, or have more time to grow in a future-value estimate.
Why is there no difference at 0% interest?
When the rate is 0%, there is no discounting or growth, so payment timing does not change the simplified value.
Is this an annuity quote or product comparison?
No. It is simplified annuity maths only, not a lifetime annuity quote, insurance product comparison, investment recommendation or personal financial advice.