Annuity Calculator
Calculate annuity accumulation and growth with regular contributions
Annuity Accumulation Calculator
Calculate the future value of your annuity with regular contributions and compound interest. This calculator shows the accumulation phase of an annuity to help you plan for retirement income.
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Growth Breakdown
Year-by-Year Accumulation
Accumulation Schedule
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đ Understanding Annuities
What is an Annuity?
An annuity is a financial product that provides regular payments over time. During the accumulation phase, you make deposits that grow with interest, building a retirement nest egg.
Annuity Due vs. Ordinary
Annuity due payments are made at the beginning of each period, while ordinary annuity payments are made at the end. Due annuities grow slightly more due to extra compounding time.
Tax Advantages
Annuities offer tax-deferred growth, meaning you don't pay taxes on earnings until you withdraw them, allowing your investment to compound more efficiently over time.
General Annuity Information
In the U.S., an annuity is a contract for a fixed sum of money usually paid by an insurance company to an investor in a stream of cash flows over a period of time, typically as a means of saving for retirement. In many cases, this sum is paid annually over the duration of the investor's life.
The Annuity Calculator is intended for use involving the accumulation phase of an annuity and shows growth based on regular deposits. Insurance companies that offer annuities pay a specific amount over a predetermined period of time either as an immediate annuity (beginning immediately) or as a deferred annuity (after an accumulation phase).
Key Benefits of Annuities
- Tax-Deferred Growth: Earnings grow without immediate tax consequences
- No Contribution Limits: Unlike 401(k)s or IRAs, no limit on investment amount
- Guaranteed Income: Can provide predictable retirement income streams
- Death Benefits: Many annuities provide benefits to beneficiaries
- Flexibility: Various types available to match different risk tolerances