Fixed Annuity Calculator
A fixed annuity can provide a secure, tax-deferred investment. Use this calculator to see how a fixed annuity might fit into your retirement plan.
How the fixed annuity calculator works
It grows your premium at the annuity’s guaranteed rate, tax-deferred, over the accumulation period, then converts the accumulated value into a level monthly income over your chosen payout period.
Worked example: with initial premium of $100,000, guaranteed annual rate of 5.00% and accumulation period (years) of 10, the fixed annuity calculator shows accumulated value of $162,889.
- Premium
- $100,000
- Tax-deferred growth
- $62,889
- Accumulated value
- $162,889
- Income if annuitized
- $1,075.00
The formula
Accumulated value = premium × (1 + rate)^years. Monthly income = value annuitized at the payout rate over the payout months.
Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.
Questions about the fixed annuity calculator
What is a fixed annuity?
An insurance contract that pays a guaranteed interest rate on your premium, grows tax-deferred, and can later be converted into a stream of income. It is the most conservative annuity type.
How is a fixed annuity taxed?
Growth is tax-deferred while it accumulates; you pay ordinary income tax only on the earnings as you withdraw them. There is no upfront tax deduction for the premium.
Are fixed annuities safe?
They carry no market risk and the rate is guaranteed by the issuing insurer, so their safety depends on the insurer’s financial strength. They are not FDIC-insured.
Is the Fixed Annuity Calculator free to use?
Yes. Every calculator on FinCalculators is completely free, with no sign-up, login or paywall. You can run as many scenarios as you like.