💰 Annuity Calculator
Calculate the future value of your annuity investments with compound interest. Plan your retirement savings with regular deposits and see how your money grows over time.
Investment Parameters
Investment Results
Annual Breakdown
| Year | Starting Balance | Deposits | Interest | Fees | Ending Balance |
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Frequently Asked Questions
What is an annuity calculator?
An annuity calculator is a financial tool that helps you estimate the future value of regular investments or deposits over time, taking into account compound interest and other factors.
How does compound interest work in annuities?
Compound interest means you earn interest not only on your original investment but also on previously earned interest. The more frequently compounding occurs, the more your investment grows.
What's the difference between nominal and real returns?
Nominal returns are the stated interest rate, while real returns account for inflation. Real returns show your actual purchasing power growth over time.
How do fees affect my annuity returns?
Management fees are typically charged annually as a percentage of your account value. Even small fees can significantly impact long-term growth due to compounding effects.
Should I choose monthly or annual contributions?
Monthly contributions often result in higher returns due to more frequent compounding and dollar-cost averaging effects, though the difference may be small.
How accurate are annuity calculator projections?
Calculators provide estimates based on assumed constant returns. Actual returns will vary due to market conditions, economic factors, and timing.
What tax implications should I consider?
Annuity earnings are typically tax-deferred until withdrawal. The tax rate you'll pay depends on your income level and tax bracket at the time of withdrawal.
Can I change my contribution amount over time?
Most annuities allow you to adjust contribution amounts, though some may have minimum requirements or restrictions. Check with your provider for specific terms.
Disclaimer
This calculator provides estimates for educational purposes only. Actual investment returns may vary significantly due to market conditions, fees, taxes, and other factors. Please consult with a qualified financial advisor before making investment decisions.