annuity calculation

Annuity calculation determines the amount of regular payments you can receive or need to make over time, based on a lump sum, interest rate, and time period. It considers how interest accumulates and gradually reduces the remaining balance. Typically, an annuity formula accounts for the present value of these future payments, allowing you to understand how much a series of equal payments is worth today or how much you need to pay regularly to reach a financial goal. This helps in planning retirement income, savings, or loan repayments by providing a clear structure of consistent payments over a specified duration.