Insurance Calculators

Variable Annuity without Surrender Charges

How can a variable annuity help you save for retirement? Use this calculator to find out.

Inputs
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Estimates only. Adjust any value to recalculate instantly.

Results
Value after surrender charge $114,258 a 6% surrender charge costs $7,293
Account value $121,551
Surrender charge $7,293
You receive $114,258
Lost to annual fees $9,529
What you keep on early withdrawal
What you keep on early withdrawal You receive: $114kSurrender charge: $7.3k
  • You receive $114k
  • Surrender charge $7.3k
Account value Before feesAfter fees
Account value: Before fees vs After fees $253k$189k$126k$63k$0 Yr 1Yr 2Yr 3Yr 4

Variable annuities often impose a surrender charge for withdrawing in the early years — here 6%, or $7,293. Combined with 2.00% annual fees, early exits are costly. Hold past the surrender period or choose a no-surrender contract.

Account value by year (fee drag)View table
YearBefore feesAfter feesLost to fees
1$107,000$105,000$2,000
2$114,490$110,250$4,240
3$122,504$115,763$6,742
4$131,080$121,551$9,529

How the variable annuity without surrender charges calculator works

It grows your premium net of annual fees to the year you withdraw, then applies the surrender charge for exiting early — showing how much an early withdrawal costs versus a contract with no surrender charge.

Worked example

Worked example: with initial premium of $100,000, annual return (before fees) of 7.00% and annual fees (m&e + fund) of 2.00%, the variable annuity without surrender charges calculator shows value after surrender charge of $114,258.

Account value
$121,551
Surrender charge
$7,293
You receive
$114,258
Lost to annual fees
$9,529

The formula

Account value = premium × (1 + return − fees)^years. Surrender charge = account value × surrender %. You receive value − charge.

Results are estimates for educational purposes and are not financial advice. Confirm exact figures with your lender, plan administrator or advisor.

Frequently asked

Questions about the variable annuity without surrender charges

What is a surrender charge?

A penalty for withdrawing from an annuity during its early years, often starting around 7% and declining annually. It is on top of ordinary fees and any tax penalties.

How long do surrender charges last?

Commonly 6–8 years, declining each year until they disappear. The calculator shows what exiting before then costs on your balance.

Are no-surrender annuities worth it?

If you may need access to the money, yes — a contract without surrender charges preserves flexibility. If you are certain to hold long term, a contract with charges may offer other benefits.

Is the Variable Annuity without Surrender Charges 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.