The Annuity Calculator is intended for use involving the accumulation phase of an annuity and shows growth based on regular deposits. Please use our Annuity Payout Calculator to determine the income payment phase of an annuity.
• Beginning (Annuity Due): Deposits occur at the beginning of each period, compounding interest for the full duration of each cycle.
• End (Ordinary Annuity): Deposits occur at the end of each period, compounding interest on the previous starting balance.
Enter your initial principal, recurring additions, and expected annual return rate.
Year-by-year balance progression, periodic deposits, and compound return earnings.
| Year | Starting Balance | Addition | Return / Interest | Ending Balance |
|---|---|---|---|---|
| Year 1 | $20,000.00 | +$10,000.00 | +$1,850.34 | $31,850.33 |
| Year 2 | $31,850.33 | +$10,000.00 | +$2,581.25 | $44,431.57 |
| Year 3 | $44,431.57 | +$10,000.00 | +$3,357.24 | $57,788.79 |
| Year 4 | $57,788.79 | +$10,000.00 | +$4,181.06 | $71,969.86 |
| Year 5 | $71,969.86 | +$10,000.00 | +$5,055.73 | $87,025.58 |
| Year 6 | $87,025.58 | +$10,000.00 | +$5,984.32 | $103,009.90 |
| Year 7 | $103,009.90 | +$10,000.00 | +$6,970.21 | $119,980.11 |
| Year 8 | $119,980.11 | +$10,000.00 | +$8,016.90 | $137,996.99 |
| Year 9 | $137,996.99 | +$10,000.00 | +$9,128.13 | $157,125.13 |
| Year 10 | $157,125.13 | +$10,000.00 | +$10,307.90 | $177,433.04 |
An annuity is a contractual financial product issued by an insurance company designed to accept and grow funds from an individual and then, upon annuitization, pay out a stream of guaranteed payments at a later point in time.
During the accumulation phase, you make initial and ongoing deposits that grow on a tax-deferred basis. During the payout phase, the accumulated principal and earnings are converted into periodic income checks.
In an Annuity Due, payments occur at the beginning of each period, yielding higher total compound return because each contribution immediately earns interest. In an Ordinary Annuity, payments are deposited at period ends.
Interest and capital gains inside non-qualified annuities grow tax-free until withdrawal. Taxes are paid only upon distributions, allowing your full balance to compound without annual tax drag.
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