arcgis desktop - Area Calculation incorrect

In ArcGIS 10.2 I created two buffers using the default settings one with a distance of 1 kilometer. When I calculated the area it has a square kilometer area of 3.14. All seems fine there to me. However, when I run the calculate area for the buffer that is 2 kilometers the area is 1.25581. Interestingly, as you go up in size to 3 kilometers, etc. the area calculations continue to be one decimal off, that is the area of a circle with a radius that is 2km should be 12.5581, 3km should be 28.27 rather than 1.256 and 2.287 respectively. The projections are the same-albers equal area. Any ideas what is happening??