Growing Annuity Calculator

A growing annuity is a fixed number of yearly payments where each one is a set percentage larger than the last — unlike a level annuity (the same payment every year) or a perpetuity (growing payments that never stop). This calculator simulates it year by year: each year's payment is added to the running balance, which then earns the given rate of return for the rest of the term, exactly like an ordinary annuity (the payment lands at the end of the year, after that year's growth on the existing balance). The future value is the balance after the final year; the present value discounts that back to today at the same rate of return.

The chart splits the final balance into what you actually paid in (cumulative payments, each one larger than the previous) versus how much came from investment growth on top of that — the gap between the two widens over time as a larger balance earns more growth each year, the same compounding effect behind this site's Compound Interest calculator, but here the contributions themselves are also growing.