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Fixed Annuity Calculator

The deferred annuity calculator below has many potential uses. By using the inputs in a particular way, you can determine the growth prospects for a fixed annuity, or gain an understanding of how today’s low interest rates can impact a contract of long periods. The output can also give you an idea of what type of income might be expected in the future from a hypothetical fixed annuity. You can also use it for variable, indexed, and immediate annuities.

How an investment might grow?
Starting Principal ($)How much do you plan to invest? Click here to learn more.
Annual Growth Rate (%)On average, what annual return do you expect? Click here to learn more.
Annual Fee and Expense rate (%)What is the expected annual rate of management fees and other expense? Click here to learn more.
Growth Period / Years until retirementHow long can you grow your principal before taking withdrawals? Click here to learn more.
Withdrawal Period / Years of retirement income neededHow many years of withdrawals do you expect to make? Click here to learn more.
Annual growth rate during withdrawal period (%)What interest rate do you expect to earn while taking withdrawals? Click here to learn more.
 
Calculate

Based on the inputs above, the approximate returns and expenses accumulated during the deferred growth period would be:

Growth Period
Gross Total Gains ($)How much would the principal grow without fees?  
Total Expense Paid (During Accumulation)How much fee expense is paid during the growth period?  
Annual Net Return (%)What is the equivalent APY during growth?  
Total Net Gains ($)How much profit would accumulate after fees are paid?  
Ending ValueWhat is the ending value of your principal (plus growth, minus fees)?  

Starting with the estimated ending value from the growth period, the estimated income available over the stated retirement period and the approximate overall return from the initial investment until the end of the withdrawal period would be:

Withdrawal Period
Starting ValueWhat is the principal balance when starting withdrawals?  
Estimated Annual Income*If withdrawing to $0 balance, what is the annual withdrawal amount?  
Total WithdrawalsWhat is the sum of the total of those annual income payments?  
Final Ending Value     
Total Net Return

 

What did the initial principal earn from principal start to withdrawal end?
 
Annual Net Return

 

What is the average annual net return? This is the observed compound growth rate from principal start to withdrawal end.
 

*The Estimated Annual Income calculation is based on a standard annuity payment formula used to calculate the periodic payment on an annuity.   For further explanation of the formula please refer to http://www.financeformulas.net/Annuity_Payment_Formula.html

 

Click below to see a hypothetical example illustrating how you might use our annuity calculator to evaluate a fixed annuity.

FIXED ANNUITY – HYPOTHETICAL EXAMPLE

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