Immediate (Ordinary) Annuity Calculator
This calculator helps you determine the fixed periodic payments of an ordinary annuity, where payments are made at the end of each period. It’s useful for retirement planning, pension schemes, and investment evaluations that involve regular, consistent payments over time.
Calculate Periodic Payments for an Ordinary Annuity
Ordinary Annuity Payment Formula
Where:
- PMT – Periodic Payment
- P – Principal or Present Value of the annuity
- r – interest rate per period (in decimal form)
- n – total number of payment periods
This formula calculates the fixed periodic payment required to repay an annuity over time at a given interest rate.
An ordinary annuity is a financial product where you make fixed payments at regular intervals (e.g., monthly, annually), starting at the end of the first period. It is commonly used in retirement plans and loans where payments are made at the end of each period rather than the beginning. This calculator helps you determine the required payment amount based on the total principal, interest rate, and the length of the annuity period.