Annuity Calculator
Quickly learn if you are investing your money in the right
kind of annuity with our easy to use annuity calculator.
- Enter ballpark values by clicking on and dragging the
diamond-shaped sliders left or right. Enter exact numbers
by clicking on the number in the box on the right and type
your number (no commas).
- The results of your calculations show in the box at the
bottom of the calculator.
Investment Amount
Simply enter the amount that you plan to invest.
Tax Rate
You should enter the amount of interest you presume would
be applied to the withdrawals from a taxable investment you
might choose instead of the annuity.
Gross Returns
This is the interest rate you would expect to earn if you
decide on an investment other than an annuity.
Withdrawal Allowance
Determine the rate you will make annual withdrawals from your
annuity fund and enter it here.
Interest Rate
This allows you to set the interest rate that you expect to
earn for each individual year of the annuity.
Surrender Charges
Surrender charges are what an annuity will impose if it is
cashed in before the agreed to period of time. This period
generally runs from 1 to 12 years. A typical surrender charge
is one that starts at 7% in the first year of the contract,
and declines by 1% per year thereafter until it reaches zero.
The charge is made against the value of the investment when
the annuity is surrendered, and its purpose is to discourage
a short-term investment by the purchaser. You can enter surrender
charges for 10 years of the annuity.
Graph
Our graph will show you an interactive comparison between
the accumulated values of an annuity and an alternative investment.
By watching the values above the graph you can easily see
how the information you enter changes the value of each investment
option. You can see the break-even point for the two options
where the lines cross in the graph or the values for an individual
year by moving the slider at the bottom of the graph.
Results
The results box details which option is better for you based
on the information you have entered.
Click
Here to open the Annuity Calculator |
