Annuity Calculator
Estimate how a deferred annuity's starting premium grows at a guaranteed interest rate, and the sustainable annual benefit it can guarantee once it pays out.
Calculator Inputs
Sets the currency this calculator's numbers are denominated in. This is presentation only — it does NOT convert your numbers between currencies, it only changes how they're formatted.
The single lump-sum premium you're depositing into the annuity.
The annuity's guaranteed nominal annual interest rate (e.g. 4 for 4%).
How many years (and optionally months) the premium grows before payout begins.
Additional months (0-11). For 18 months, enter 1 year 6 months.
- Total Accumulated Value
- $148,024.43
- Guaranteed Annual Benefit
- $5,920.98
About these results
CalcSpectrum calculators produce automated estimates using established formulas and the specific values you enter. Because real-world outcomes depend on input accuracy, mathematical assumptions, and rounding conventions, please verify critical figures with an appropriately qualified financial, tax, medical, legal, or other professional, as relevant.
Financial Notice: These figures are informational estimates for personal planning only. They do not constitute financial, investment, tax, or legal advice, nor do they represent a lending offer or credit approval. Provider and financial institution figures, rates, fees, and underwriting requirements may differ.
How It's Calculated
Formula
This calculator models the accumulation phase of a deferred fixed annuity: a single starting premium grows at a guaranteed annual interest rate, compounded annually, for the deferral period you enter. It then reports a guaranteed periodic benefit — the amount you could withdraw every year, forever, without ever touching the accumulated principal, since it's exactly the interest the balance earns each year. This is a generic, deterministic estimate. It does not model mortality/life-expectancy tables, annuitization options, fees, surrender charges, or insurer-specific payout terms — an actual insurance-issued annuity's payout will depend on those factors too. Check your annuity contract or provider for an official payout quote.
Worked Examples
$100,000 premium, 4% guaranteed rate, 10-year deferral
- Accumulated value = 100,000 × (1.04)^10 ≈ $148,024.43
- Guaranteed annual benefit = 148,024.43 × 0.04 ≈ $5,920.98
Zero deferral: payout begins immediately
- With 0 deferral years, the accumulated value equals the starting premium exactly (no growth has occurred yet)
Frequently Asked Questions
What does 'guaranteed periodic benefit' actually mean here?
It's the annual amount the accumulated value's interest alone can sustain forever, without ever drawing down the principal — since only interest is withdrawn, the balance never shrinks, so the benefit is guaranteed to be sustainable indefinitely at the same guaranteed rate.
Does this account for my life expectancy or a mortality table?
No. This calculator has no life-expectancy or mortality-table input, so it never assumes one — doing so would require actuarial data this tool doesn't have. Instead it reports the sustainable, principal-preserving interest-only benefit, which is mathematically guaranteed at the stated rate regardless of how long payouts continue.
Why is this different from the Annuity Payout Calculator?
This calculator grows a starting premium over a deferral period to produce an accumulated value first, then derives a benefit from it. The Annuity Payout Calculator instead starts from a principal balance you already have and a distribution frequency you choose — it doesn't include a growth/deferral phase.
Is this a quote from an insurance company?
No. This is a generic, deterministic estimate using only the three inputs you provide. It does not model fees, surrender charges, mortality tables, or provider-specific annuitization terms — contact your annuity provider for an official payout quote.