Annuity Calculator

This calculator helps you estimate annuity payments based on your investment amount, expected rate of return, payment period, and payout method. Annuities provide guaranteed income during retirement.

Sponsored Advertisement
[AdSense Ad]

Enter Investment Information

Growth Over Investment Period

Sample Calculations

Example 1: Fixed Annuity - $100k Investment
Investment: $100,000, Return: 4%, Investment Period: 10 years, Payment Period: 20 years
Estimated Future Value: $148,000, Annual Payment: $10,200 - $11,500
Example 2: Variable Annuity with Contributions
Investment: $50,000, Annual Contribution: $10,000, Return: 6%, Investment Period: 25 years, Payment Period: 30 years
Estimated Future Value: $750,000, Annual Payment: $52,000 - $58,000
Example 3: Life-Only Payout
Investment: $200,000, Return: 3.5%, Age: 65, Payout: Life Only
Estimated Annual Payment: $12,500 - $14,000 (higher payout, no survivor benefit)

Calculation Methodology & Sources

Data Source: SEC, FINRA, Insurance Information Institute
Last Updated: January 2026
Reference: View Sources

The annuity calculation uses the future value of annuity formula:

  • Future Value = P * [(1 + r)^n - 1] / r + PMT * [(1 + r)^n - 1] / r
  • Annual Payment = Future Value / Present Value Annuity Factor
  • Life expectancy tables used for life-only payouts
  • Fixed annuity rates: 2-5%, Variable: 4-8%, Indexed: 3-6%
  • Securities and Exchange Commission (SEC) - Annuity investor education
  • Financial Industry Regulatory Authority (FINRA) - Annuity calculators and guides
  • Insurance Information Institute (III) - Annuity statistics
  • Social Security Administration - Life expectancy tables

    • Frequently Asked Questions

    An annuity is a financial product that provides regular income payments in exchange for an initial investment. It's commonly used for retirement planning to ensure guaranteed income.
    Fixed annuities provide a guaranteed interest rate and payment amount, while variable annuities allow you to invest in sub-accounts with returns based on market performance. Indexed annuities offer returns linked to a market index with a minimum guarantee.
    If you purchase an annuity with after-tax dollars, only the interest portion is taxed as ordinary income. If purchased with pre-tax dollars (like an IRA), all payments are taxed as ordinary income.
    With a life-only annuity, payments stop upon death. With a period-certain or joint-and-survivor annuity, payments continue to your beneficiary for the guaranteed period or to your spouse.