What is the future value of an annuity?

Unlike a taxable account, a fixed annuity enjoys the benefits of tax deferral. In addition, many annuity companies offer a higher first year bonus rate. To be able to offer these higher rates companies typically require you to keep the funds invested for a period of time or suffer a surrender penalty for early withdrawal. Use this calculator to help determine your annuity value in a given year and compare it to a taxable savings account like a CD.
Savings and Assumptions
Initial balance or deposit ($) 
Annual savings amount ($) 
Annual increase in contributions (%) 
Number of years for the analysis 
Before tax return on taxable account (%)help
Marginal tax bracket during deposit(s) (%)help
Marginal tax bracket at withdrawal (%)help
Annuity Information
Initial rate (%) 
Number of years initial rate is guaranteed 
Subsequent expected interest rate (%) 
Minimum guaranteed interest rate (%) 
Surrender Charges (if applicable)
Year 1 (%) 
Year 2 (%) 
Year 3 (%) 
Year 4 (%) 
Year 5 (%) 
Year 6 (%) 
Year 7 (%) 
Year 8 (%) 
Year 9 (%) 
Year 10 (%) 
The information provided here is to assist you in planning for your future. Any analysis is a result of the information you have provided. Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary therefore, the information should be relied upon when coordinated with individual professional advice.

Any rate of return entered into the interactive calculator to project future values should be a reasonable average return for the period. Rates of return will vary over time, and generally the higher the rate of return the higher the degree of risk.

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