Annuity Calculator
How to Use the Annuity Calculator
Our annuity calculator helps you understand and plan for your financial future. You can use it to see how your savings can grow over time (accumulation phase) or determine how much you can withdraw from your savings during retirement (annuitization phase). Select the phase, enter your details, and the calculator will solve for your desired variable.
Examples
Accumulation Example
Input: Starting with $10,000, contributing $500 monthly for 20 years at a 5% growth rate.
Output: Future Value: $318,345.54
This shows how much your savings will grow to in the future.
Annuitization Example
Input: Withdrawing monthly from a $500,000 principal over 25 years at a 4% growth rate.
Output: Monthly Withdrawal: $2,639.26
This shows the fixed payment you can receive from your savings during retirement.
Frequently Asked Questions
What is an annuity?
An annuity is a financial product that pays out a fixed stream of payments to an individual, primarily used as an income stream for retirees.
What is the difference between an ordinary annuity and an annuity due?
For an ordinary annuity, payments are made at the end of each period. For an annuity due, payments are made at the beginning of each period. Our calculator supports both types.
What is the accumulation phase?
The accumulation phase is the period when you are actively saving and contributing money to the annuity, letting it grow over time.
What is the annuitization phase?
The annuitization (or payout) phase is the period when you start receiving regular payments from the annuity.