Annuity Calculator

Calculate the future value of an annuity with regular payments and fixed interest rate. This tool processes all data locally in your browser. No information is ever sent to any server. Completely free, no registration required.

How to Use the Annuity Calculator

1. Enter your input values above
2. Results update automatically
3. Copy or download the output

What is a Annuity Calculator?

An Annuity Calculator determines the future value and payout amounts of an annuity — a financial product that provides a steady income stream over a specified period or for life. Annuities are a cornerstone of retirement planning: a fixed annuity guarantees a specific monthly payment, while a variable annuity's value depends on underlying investment performance. This calculator helps you project: (1) how much to invest now for a desired future monthly income, (2) what monthly income a given lump sum can provide, or (3) how much a series of regular contributions will grow to over time.

How Does It Work?

Enter the initial investment (if any), periodic contribution amount, interest rate, compounding frequency, and payout period. The calculator computes: Future Value of the accumulation phase using the compound interest + annuity formula, then the periodic payment amount during the payout phase. For immediate annuities: Payment = Principal ÷ PVIFA (Present Value Interest Factor of Annuity). The tool supports fixed (guaranteed) and variable (market-based) projections.

Formula

Future Value = P(1+r)^n + PMT × [(1+r)^n − 1] / r\n\nWhere:\nP = Initial Principal, PMT = Periodic Contribution\nr = Interest Rate per Period, n = Number of Periods\n\nImmediate Annuity Payment:\nPMT = Principal ÷ [(1 − (1+r)^−n) ÷ r]\n\nAnnuity Duration:\nYears = log[PMT ÷ (PMT − r × Principal)] ÷ log(1+r)\n\nTypes:\n• Immediate: starts paying immediately\n• Deferred: accumulation phase, then payout phase\n• Fixed: guaranteed payment amount\n• Variable: payment varies with investment performance\n• Life: pays until death (actuarial calculation)

Who Uses This Tool?

• Pre-retirees evaluating annuity products vs. systematic withdrawals
• Insurance agents illustrating annuity benefits to clients
• Financial planners projecting retirement income streams
• Structured settlement recipients evaluating lump sum vs. annuity options
• Anyone comparing annuity returns to other fixed-income investments

Pro Tips

• Annuity fees matter enormously: variable annuities often charge 2-3%+ in annual fees. On a $500K annuity over 30 years, 2.5% fees can eat $200K+ in returns
• Shop around: immediate annuity payouts can vary 10-20%+ between insurers for the same premium. Use an annuity marketplace or independent agent
• The 'annuity puzzle': economists note that annuities are underused despite their theoretical benefits. Reasons include bequest motives, cognitive complexity, and distrust of insurers
• Fixed indexed annuities (FIAs) are complex products with caps and participation rates. Understand the worst-case scenario before buying

Frequently Asked Questions about Annuity Calculator

Are annuities a good investment?

For guaranteed lifetime income in retirement — yes, they serve a specific purpose. For growth/investing — no, high fees and surrender charges make them poor vehicles for accumulation. Most financial planners recommend annuities only for the income guarantee, not as investment products.

What happens to my annuity when I die?

It depends on the contract. Standard life-only annuities stop payments at death (highest monthly payout but no inheritance). Period-certain annuities pay for a guaranteed minimum period. Joint-and-survivor annuities continue paying to a spouse. Refund annuities return remaining principal to beneficiaries.

Free online Annuity Calculator — no signup, 100% client-side processing. All data stays in your browser.