Project an annuity through its accumulation phase and the payout it can provide.
Accumulation phase
Payout phase
| Year | Contributions | Earnings | Balance |
|---|---|---|---|
| 1 | $56,000.00 | $2,697.52 | $58,697.52 |
| 2 | $62,000.00 | $5,840.03 | $67,840.03 |
| 3 | $68,000.00 | $9,450.28 | $77,450.28 |
| 4 | $74,000.00 | $13,552.21 | $87,552.21 |
| 5 | $80,000.00 | $18,170.98 | $98,170.98 |
| 6 | $86,000.00 | $23,333.02 | $109,333.02 |
| 7 | $92,000.00 | $29,066.13 | $121,066.13 |
| 8 | $98,000.00 | $35,399.53 | $133,399.53 |
| 9 | $104,000.00 | $42,363.93 | $146,363.93 |
| 10 | $110,000.00 | $49,991.61 | $159,991.61 |
| 11 | $116,000.00 | $58,316.52 | $174,316.52 |
| 12 | $122,000.00 | $67,374.31 | $189,374.31 |
| 13 | $128,000.00 | $77,202.49 | $205,202.49 |
| 14 | $134,000.00 | $87,840.46 | $221,840.46 |
| 15 | $140,000.00 | $99,329.67 | $239,329.67 |
| 16 | $146,000.00 | $111,713.66 | $257,713.66 |
| 17 | $152,000.00 | $125,038.20 | $277,038.20 |
| 18 | $158,000.00 | $139,351.43 | $297,351.43 |
| 19 | $164,000.00 | $154,703.92 | $318,703.92 |
| 20 | $170,000.00 | $171,148.85 | $341,148.85 |
Please do not make financial decisions based on these results.
What is the Annuity Calculator?
An annuity turns savings into guaranteed income. This calculator grows your contributions during the accumulation phase, then shows the payout for a chosen number of years.
Turning savings into income
Near retirement, the questions change from saving to spending. The annuity payout calculator shows what a lump sum could pay, the Social Security calculator compares claiming ages, and the RMD calculator shows required withdrawals.
How to use the Annuity Calculator
- Fill in the fields. You will need Starting balance ($), Additional contribution ($), Accumulation time: years, Annual growth rate (%), Payout length (years), Rate during payout (% per year). Use today’s balances and your real contribution amounts, then test a more cautious return. Fields marked optional can stay at zero.
- Choose your options. Contribution frequency, Compounding, Payouts at the… change how the result is worked out, and the form updates to match your choice.
- Read the result. The highlighted box gives the Monthly payout, and the cards below show Balance when payouts start, Total contributions, Growth during accumulation. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Annuity Calculator using the default values shown in the calculator above:
Inputs
| Starting balance ($) | 50,000 |
|---|---|
| Additional contribution ($) | 500 |
| Contribution frequency | Monthly |
| Accumulation time: years | 20 |
| Annual growth rate (%) | 5 |
| Compounding | Monthly |
| Payout length (years) | 20 |
| Rate during payout (% per year) | 4 |
| Payouts at the… | End of each period |
Results
| Monthly payout | $2,067.29 |
|---|---|
| Balance when payouts start | $341,148.85 |
| Total contributions | $170,000.00 |
| Growth during accumulation | $171,148.85 |
| Total payouts | $496,150.78 |
| Interest earned in payout phase | $155,001.93 |
With these inputs the calculator returns Monthly payout: $2,067.29. Change any value in the calculator to see how the result moves.
What the results tell you
The results panel of the Annuity Calculator reports Monthly payout, balance when payouts start, total contributions, growth during accumulation, total payouts and interest earned in payout phase. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Tips for better results
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. Retirement results depend on returns, inflation and contribution limits that change over time. They are projections, not promises. It is for information, not financial, tax or legal advice.
Frequently asked questions
Does this assume a fixed rate?
Yes. A fixed annual rate is used for both phases.
What is the accumulation phase?
The period when you deposit money and it earns interest, before payouts begin.
Are the contribution limits current?
The 2026 IRS limits are built in (401(k) $24,500, IRA $7,500) and can be edited in the data file.
How much should I save for retirement?
Many planners suggest saving 10% to 15% of income, including employer match, starting early. The retirement calculator shows the monthly amount you need for your own goal.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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