Annuity Calculator
Calculate the future value or present value of any annuity — find how much regular payments will grow or what a stream of payments is worth today.
The Annuity Calculator is a free online tool designed to help you calculate and analyze calculate annuity payments and present value. Planning details accurately is crucial for making smart personal or financial decisions, and this calculator provides instant clarity with downloadable PDF reports.
This tool is built to benefit retirees, savers, and pension planners projecting payout values, accumulation schedules, or present values of annuities. By calculating payment streams, you can secure retirement income. By evaluating these key calculations, you can determine exactly how different inputs affect your results and align them with your direct planning requirements.
Before using this tool, make sure you have your details ready, such as your starting balance, monthly contributions, annual growth rate, payout term (years), and payment frequency. This ensures the most accurate calculations.
Example Calculation
Scenario: A retiree wants to calculate the monthly payout supported by a $250,000 annuity earning a 5.00% annual return over a 20-year payout term.
- Input: Annuity Balance = $250,000
- Input: Expected Annual Return = 5.00%
- Input: Payout Period = 20 Years
- Input: Payment Frequency = Monthly
Result: The annuity supports a monthly payment of $1,649.98. Over the 20-year term, the retiree will receive a total of $395,995.20 in payout.
Download the PDF report to save your annuity payout breakdown. Reviewing payment schedules helps you align retirement payouts with mandatory living expenses.
Frequently Asked Questions
What is an annuity?
An annuity is a financial contract purchased from an insurance company where you pay a lump sum or series of payments in exchange for guaranteed regular payouts in the future, usually during retirement.
What is the difference between an immediate annuity and a deferred annuity?
An immediate annuity begins making payout payments shortly after you buy it (usually within a month). A deferred annuity accumulates interest over an extended period (accumulation phase) before starting payouts years later.
What is the difference between a fixed annuity and a variable annuity?
A fixed annuity guarantees a set interest rate and fixed payment amounts. A variable annuity links your returns and payouts to the performance of underlying investment portfolios (sub-accounts), offering higher growth potential but more risk.
What is an annuity surrender charge?
Surrender charges are penalties charged if you withdraw money from an annuity before a designated surrender period ends (typically 5 to 7 years). The charge is usually a percentage of the withdrawn amount, declining annually.
Are annuity earnings tax-deferred?
Yes, annuity investment earnings grow tax-deferred. You do not pay taxes on the growth until you start receiving payouts, at which point interest is taxed as ordinary income.
Can I download my annuity payout schedules?
Yes, clicking the download button generates a clean PDF report outlining your accumulation growth, payout schedules, and total payouts.