Project the growth of a fixed or indexed annuity over time
Project the growth of a fixed or indexed annuity using our free annuity calculator. Enter your initial premium, monthly contributions, expected annual rate of return, and term in years to see the total annuity value at the end of the term, including total contributions and interest earned.
Annuities are financial products that can provide a guaranteed income stream in retirement, but understanding how they grow over time is essential for making informed purchase decisions. Our annuity calculator projects the accumulation phase of both fixed and indexed annuities, showing you how your initial premium and ongoing contributions can compound over time.
Fixed annuities offer predictable, guaranteed growth at a stated interest rate, while indexed annuities offer growth potential linked to market performance — typically with caps and participation rates that limit upside but protect against downside. Our indexed model assumes an 80% participation rate for illustrative purposes.
The future value combines the growth of the initial lump sum and the future value of a series of monthly payments, both compounded monthly at the effective rate.
Fixed annuities earn a guaranteed interest rate. Indexed annuities earn returns linked to a market index (like the S&P 500) but typically cap gains and apply a participation rate — we model 80% of the stated return.
No, this calculator does not account for surrender charges, fees, or rider costs. The actual growth may be lower depending on your specific annuity contract.
Annuities often carry fees including mortality and expense risk charges, administrative fees, rider fees for optional benefits, and surrender charges for early withdrawals. These can range from 1–4% annually and are not included in this projection.
A surrender charge is a penalty for withdrawing money from an annuity during the surrender period, which typically lasts 5–10 years. Charges often start at 7–10% and decline annually until they reach zero.
Yes, annuities can be held inside IRAs and other tax-advantaged retirement accounts. However, the tax deferral benefits of an annuity are redundant inside a retirement account, so the decision should focus on the annuity's features and guarantees.