# Everything about Calculating Annuity Value Online in India

## How Does an Annuity Plan Calculator Work?

An annuity calculator functions with the following formula -

PV = C x [{1-(1+r)^-n}/r]

The following table will give you an insight into the meaning of each term -

 Symbols Meaning PV Present Value C Cash flow per period r Interest rate n Number of periods

Furthermore, to find out the future value of an annuity, the calculator works on the following formula:

P = PMT x [{(1+r)^n-1)}/r]

Here is a table showing the representation of all the variables -

 Variables Representation of the Variables P Future value of an annuity PMT Value of every annuity payment r Rate of interest n Number of periods on which one will make payment
Calculating the present and future values of annuity manually by using the above formulas can be complex and time-consuming. To that end, an annuity calculator can simplify the calculations and fetch necessary details in a short span.

## How to Calculate Annuity by Using an Online Calculator?

Interested individuals can calculate annuity using an online  calculator to save their time and effort. They must follow the steps mentioned below to calculate an annual payout amount -

• Step 1: Enter the starting principal.
• Step 2: Input details regarding return rate.
• Step 3: Type in the number of years to payout.

After submitting the aforementioned values, the calculator will fetch details of the annual payout amount.

Let’s understand this with the help of an example.

 Variables Values Principal ₹50,000 Return rate 6% Years to payout 10 years
After entering the aforementioned values, the calculator finds out the annual payout amount to be ₹6,408.8.