Future Value of an Annuity

See what regular contributions to a deferred annuity could grow to.

Your numbers

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Future value

Value at end
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Projects tax-deferred accumulation at a constant rate. Fees and surrender charges vary by product and reduce real returns; withdrawals are taxed as income.
About this calculator

Future Value of an Annuity

A deferred annuity calculator projects what regular contributions to a tax-deferred annuity could grow to over time before you begin taking income.

The accumulation phase

A deferred annuity grows in two stages: an accumulation phase where contributions compound tax-deferred, and later a payout phase. This calculator covers accumulation, projecting the balance at a constant growth rate, so you can see what steady contributions might become before income begins.

Read the fine print

Annuities are insurance products, and their real returns depend heavily on fees, which can be higher than low-cost index funds, and on surrender charges for early withdrawals. Growth is tax-deferred, but withdrawals are taxed as ordinary income, and early ones may face penalties. Compare the all-in costs against simpler tax-advantaged accounts like a 401(k) or IRA before choosing one.

How to use it

  1. Enter your initial amount and monthly contribution.
  2. Set the years to grow and growth rate.
  3. See the projected future value.
  4. See how much is contributions versus growth.

Frequently asked questions

How does a deferred annuity grow?

Contributions compound tax-deferred during the accumulation phase, then convert to income later. This tool projects the accumulation balance.

Are annuity gains taxed?

Growth is tax-deferred, but withdrawals are taxed as ordinary income, and early withdrawals may face penalties.

Should I use an annuity or a 401(k)/IRA?

Compare fees and features. Annuities can carry higher costs, so many people max out low-cost retirement accounts first.

See the exact formula and a worked example on our methodology page.

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