Using the Annuity Calculator
Use the starting balance, regular deposit and accumulation period to compare possible outcomes. If you are instead deciding how much a balance can pay out each month, the annuity payout calculator addresses that different question.
Worked example
Use the example inputs below to reproduce this result. These are the form's starting values, not recommended targets. Changing your inputs updates your result above; this worked example stays fixed for comparison. Results are rounded for display.
Example inputs
- Starting balance
- 10000
- Monthly contribution
- 200
- Annual nominal return (%)
- 5
- Years
- 10
Example result
- Future balance
- 47,526.55
- Total contributions
- 34,000
- Growth
- 13,526.55
Method and assumptions
Monthly compounding with end-of-month contributions and a constant nominal annual rate. Taxes, fees and market fluctuations are excluded.
Separate contributions from growth
An ending balance can grow because you put more money in, because the assumed return is higher, or because the money has more time to compound. Those are different effects. Keep the contribution schedule consistent when comparing rates, and distinguish a mathematical projection from a return that is contractually guaranteed. Fees and taxes need their own assumptions.
Common question
Is the result a quote for an insurance annuity?
No. It is a mathematical projection using your interest assumption. An insurer’s actual quote depends on the contract, charges, guarantees and any income options selected.
Guide updated .