Future value of an annuity due is the sum total of a series of cash flows and the interest earned on these cash flows at a predetermined rate, over a certain period or years ; with the first cash flow in the annuity occurring at the beginning of the period.
The formula for calculating the Future value of annuity due at the end of ‘ n ‘ years is
FV = A * [ ( ( 1 + r ) n – 1 ) / r ] * ( 1 + r )
FV = Future value of annuity due ; A = Annual cash flow ; r = discount rate ; n = Number of years ;
In the calculator below insert the values of Annual cash flow, Discount rate and Number of years to arrive at the Future value of Annuity due.