What is the future value of an annuity due formula?

FVdue = P × [(1 + r)n − 1] ÷ r × (1 + r), with P the deposit, r the rate per period and n the number of deposits.

How much more is an annuity due worth?

Exactly r times the ordinary annuity value, because every deposit compounds for one extra period.

Is my savings plan an annuity due?

If you deposit at the beginning of each period, yes. If you deposit at the end (for example, from each paycheck at month-end), it is an ordinary annuity.

What is the Excel equivalent?

=FV(rate, nper, −pmt, 0, 1). The final 1 sets payments at the beginning of each period.

Future Value of Annuity Due Formula

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Future Value of an Annuity Due Calculator

When you deposit money at the start of each period, every deposit earns interest for one period longer than in an ordinary annuity. The future value of an annuity due is therefore the ordinary annuity result multiplied by (1 + r). It is the right formula for savings plans where you pay in on the first of the month, or for contributions made at the start of each year.

Formula

FV_due = P × (1 + r)ⁿ − 1r × (1 + r)

Where

FV: future value of the payment stream (payments at the start of each period)
P: payment per period
r: interest rate per period, as a decimal
n: number of payments

Calculator

Payment per period (P)

Rate per period (r) (%)

Annual rate ÷ payments per year.

Number of payments (n)

Result and step-by-step solution

Future value of the annuity due

32,939.75

120 payments of 200.00 (total paid in 24,000.00), of which 8,939.75 is interest.

Convert the rate to a decimal
r = 0.5% = 0.005
Growth term
(1 + r)ⁿ = (1 + 0.005)¹²⁰ = 1.819397
Annuity factor
1.819397 − 10.005 = 163.879347
Multiply by the payment
200.00 × 163.879347 = 32,775.87 (ordinary annuity)
Shift payments to the start of each period
32,775.87 × (1 + 0.005) = 32,939.75

How to use the formula

The calculator computes the ordinary annuity factor [(1 + r)ⁿ − 1] ÷ r, multiplies by the deposit and then applies the one-period shift. The example saves 200 a month for 120 months at 0.5% a month: the annuity due reaches 32,939.75, which is 163.88 more than the same deposits made at month-end.

The difference looks small over a few years but grows with the rate and the term, which is why paying into a retirement account at the start of the year rather than the end adds up. To see the end-of-period version side by side, use the future value of an annuity; for deposits that rise every year, see the growing annuity formula.

Frequently asked questions

What is the future value of an annuity due formula?: FV_due = P × [(1 + r)ⁿ − 1] ÷ r × (1 + r), with P the deposit, r the rate per period and n the number of deposits.
How much more is an annuity due worth?: Exactly r times the ordinary annuity value, because every deposit compounds for one extra period.
Is my savings plan an annuity due?: If you deposit at the beginning of each period, yes. If you deposit at the end (for example, from each paycheck at month-end), it is an ordinary annuity.
What is the Excel equivalent?: =FV(rate, nper, −pmt, 0, 1). The final 1 sets payments at the beginning of each period.

Last reviewed: September 26, 2026. Calculations run in your browser and were checked against numpy-financial, SciPy and published spreadsheet examples.