Annuity Calculator




This is an annuity calculator to calculate the growth of your annuities. In finance theory, the term annuity is defined as a series of fixed payment at regular intervals. Regular deposits to a savings account is one sample that falls into this category. It could be difficult for non finance people to understand the term. It is easier to say that this calculator will calculate how much your investment will grow with certain withdrawal conditions.

Annuity Calculator Excel Template

You may not need it now, but it should be useful if you plan to retire at certain age and start your own business. You can manage your business risks by withdrawing your savings to support your monthly expenses and grow your business without putting yourself in its payroll until it gains profit. If you don’t plan for early retirement, you can use it for getting a rough figure of money that you will have after official retirement.

By using this calculator, you can get results of :

  • The amount of money you have to put for withdrawing a certain amount of money within particular year period (Initial Principal table).
  • The amount of annuity payment per year you can receive over particular year period if you start with specific amount of money (Annuity Payment table).
  • The number of years you can withdraw particular amount of money based on certain amount of money (Number of Payment Years table).

This calculator should be suitable for you who works on financial institution as well. Or, any financial students who want to see how to implement annuity calculation in Microsoft Excel. I don’t want to explain more detail about financial terms used in this calculator or how the formulas works. There are plenty of resources you can find in internet easily. And if you are financial people, you might already understand it better than me :).

How to Use Annuity Calculator Template

There are three tables that will generate those numbers. You just need to put all required data to get the results.

Initial Principal

Fill annual payment, interest rate, inflation rate and number of withdrawal years in respective white fields. Select payment type (beginning or end of year) to withdraw the money. You can put zero on inflation rate cell. It will generate lower initial principal amount. But, inflation rate is a common reference in every country to value their yearly economic growth. To make it simple, this rate is one consideration for any businesses to increase the price of their sold products yearly.

Annuity Payment

Fill initial principal, interest and inflation rate, number of withdrawal years and payment type in respective cells. Those values will generate annual payment that you will receive each year.

Number of Payment Years

This table will generate the number of years you can withdraw your money. It is based on data you fill on initial principal, interest and inflation rate, withdrawal amount in the first year and payment type fields.

If you open this spreadsheet, you will see that all fillable fields are already filled with dummy values. It should give you a rough figure on how these three tables works. I used built-in excel financial functions to form all formulas. You can see them inside since they are not protected. You can modify those formulas as well as change its layout to suit your needs.

  Annuity Calculator (13.0 KiB, 827 hits)

If you are looking for a more simple calculator to calculate how much your savings will grow after certain period, you can try this savings calculator. It is an old spreadsheet but it is still relevant to calculate your savings without any withdrawal plans.