Annuity Calculator
Calculate how much your annuity will grow during the accumulation phase based on contributions, interest rate and time before payouts begin.
How to use the Annuity Calculator
- Enter your inputs into the Annuity Calculator above.
- Results update instantly as you type — no submit button needed.
- Adjust any value to see how the result changes in real time.
The annuity accumulation formula
FV = PMT · [((1 + r)^n − 1) / r] + PV(1 + r)^n
PMT is the periodic contribution, r is the periodic interest rate, n is the number of periods and PV is any initial deposit. Use monthly rate (annual / 12) and months for monthly contributions.
Worked example
$200/month contributions for 25 years at 4.5% compounded monthly: FV = 200 × [((1.00375)^300 − 1)/0.00375] ≈ $114,400. Total contributed: $60,000. Interest earned: $54,400.
Frequently asked questions
What's the difference between fixed and variable annuities?
Fixed annuities pay a guaranteed rate set by the insurer. Variable annuities invest in subaccounts (mutual funds) with returns that vary with market performance.
Are annuity earnings taxed?
Earnings inside the annuity grow tax-deferred. Withdrawals are taxed as ordinary income (not capital gains), and pre-59½ withdrawals usually incur a 10% IRS penalty.
What fees should I watch for?
Variable annuities can carry mortality and expense (M&E) fees of 1–1.5% plus subaccount fees — total drag of 2–3% per year is common. Surrender charges may apply for early withdrawals.