Annuity Calculator

Annuity formulas can be complicated and difficult to understand. The Fisher Investments annuity calculator can help estimate balances and cumulative fees of deferred annuities if held to maturity and converted to income through annuitization.

To use the calculator either manually enter values on the right, or use the sliders to change values, then hit the calculate button to view your results.

Annuity Calculator Input Definitions:

• Starting Principal: Implies the value of the asset at the start of the annuity process.
• Annual Growth Rate: The hypothetical yearly growth rate of the annuity.
• Annual Fee and Expense Rate: The annual cost of the annuity.
• Growth Period/Years Until Retirement: Number of years you expect the annuity to grow before having any income needs.
• Withdrawal Period/Years of Retirement Need: Number of years you expect the annuity to while taking income.
• Annual Growth Rate During Withdrawal Period: The hypothetical yearly growth rate of the annuity during years income is needed.
Starting Principal
\$
Annual Growth Rate
%
Annual Fee and Expense Rate
%
Growth Period/Years Until Retirement
Withdrawal Period/Years of Retirement Need
Annual Growth Rate During Withdrawal Period
%

Approximate Returns and Expenses

Based on the inputs above, the approximate returns and expenses accumulated during the deferred growth period would be:

Growth Period

Annual Net Return
Gross Total Gains
Total Expenses Paid
Total Net Gains
Ending Value

Starting with the estimated ending value from the growth period, the estimated income available over the stated retirement period and the approximate overall return from the initial investment until the end of the withdrawal period would be:

Withdrawal Period

Starting Value
Estimated Annual Income
Total Withdrawals
Final Ending Value
Total Net Return ( years)
Annual Net Return ( years)

*The Estimated Annual Income calculation is based on a standard annuity payment formula used to calculate the periodic payment on an annuity. For further explanation of the formula please refer to http://www.financeformulas.net/Annuity_Payment_Formula.html

Annuities may seem like simple long-term investment products. You give an insurance company a sum of money and in return you receive a steady stream of payments over time. Sounds simple, right? Not exactly. Deep in the fine print, there are many terms, conditions and variables that can affect annuity returns. So before buying an annuity, be sure to completely understand the specifics of the annuity you’re considering. Read our free guide to annuities here.

Annuity Calculator Results:

The results above will help you determine whether or not an annuity is the best financial vehicle for your retirement planning. Further, the annuity calculator may help you better understand how annuities work, and provide insight on the pros and cons of annuities for investors. There are many types of annuities available today in the market—and each works somewhat differently. So, it's important to be careful when selecting these products. Base your decision on facts, not an annuity sales pitch. Learn more about our perspective on annuity calculators here.

When considering an annuity, the type you choose can play a key role in how much your money will grow, as well as the amount of retirement income you will ultimately receive. Options include a deferred annuity, immediate annuity, fixed annuity, variable annuity, or an indexed annuity. Our annuity calculator aims to provide you with insight on the potential return and the costs of deferred annuities.

Considering an annuity? Get the facts in Annuity Insights, our free guide to annuities.