Annuity Tables

Shawn Plummer

CEO, The Annuity Expert

When to Use an Annuity Table

An annuity table is primarily used in finance for calculating the present value of an annuity. It is particularly useful in the following scenarios:

  1. Retirement Planning: To estimate the value of retirement funds over time.
  2. Loan Repayments: In understanding the breakdown of payments for loans like mortgages.
  3. Investment Analysis: To determine the present value of future cash flows from investments.
  4. Insurance Products: For calculating the payout plans of certain insurance policies.
Annuities Tables

How to Use an Annuity Table

  1. Identify the Interest Rate and Periods: Determine the periodic interest rate and the total number of periods (years, months, etc.).
  2. Locate the Correct Factor: Using the interest rate and period, find the corresponding factor in the annuity table.
  3. Calculate Present Value: Multiply the annuity payment by the factor from the table to get the present value.


Consider a 5-year annuity with annual payments of $1,000 at an interest rate of 5%.

  1. Interest Rate and Periods: 5% interest rate, 5 years.
  2. Locate Factor: Assume the factor from the table is 4.3295.
  3. Calculate Present Value: $1,000 × 4.3295 = $4,329.50.
The Annuity Tables

Unique Annuity Table

Years3% Interest Factor5% Interest Factor7% Interest Factor


Understanding and using an annuity table is crucial for calculating the present value of annuities in various financial scenarios. It simplifies the process of determining the value of periodic payments over time, making it a valuable tool in financial planning and analysis.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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