Fixed Annuity Calculator
Project guaranteed fixed annuity growth and payout amounts.
- Last reviewed
- August 26, 2026
- Cost
- Free to use
- Data
- Runs in your browser
- Reviewed by
- Anton Jonson
Accumulated Value
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Annual Payout
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Monthly Payout
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Total Guaranteed Payout
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Methodology
How this calculator handles inputs
This calculator uses the values you enter above and applies the formula explained in the guide below. Results update in the browser and are intended for quick planning, comparison, and sanity-checking.
- Use consistent periods, currencies, and units across inputs.
- Review any assumptions before using the result in a decision.
- Recalculate when rates, prices, tax rules, or business terms change.
Important note
This tool provides general planning information only. It is not tax, legal, financial, accounting, or investment advice. Check the current rules for your location and speak with a qualified professional before making a high-stakes decision.
Guide
How it works
Use this calculator to project guaranteed fixed annuity growth and payout amounts.
What this calculator does
The fixed annuity calculator estimates accumulated value at payout start and income during the payout period. It uses a guaranteed annual interest rate.
It uses:
- initial premium
- guaranteed interest rate
- accumulation period
- payout period
Fixed Annuity Formula
Accumulated Value = Principal × (1 + Rate)^Years
Where:
- Principal = initial premium
- Rate = guaranteed annual interest rate
- Years = accumulation period
- Payout = annuity payment from accumulated value
Example calculation
If:
- Premium = 250,000
- Guaranteed rate = 4%
- Accumulation period = 10 years
- Payout period = 20 years
Then:
- Accumulated value = 250,000 × 1.04^10
- Accumulated value = about 370,000
- Annual payout is calculated from that balance
- Monthly payout is annual payout ÷ 12
The fixed annuity grows at the guaranteed rate.
What is fixed annuity?
A fixed annuity is an annuity contract with a stated interest rate or guaranteed crediting rate. It is designed for predictable growth and income.
Why fixed annuity planning matters
- estimates guaranteed income
- separates accumulation and payout phases
- supports retirement income planning
- compares with variable annuities
When to use this calculator
- projecting fixed annuity value
- estimating payout income
- comparing accumulation periods
- reviewing guaranteed rate assumptions
Common mistakes
- ignoring surrender charges
- assuming all rates last forever
- overlooking fees or riders
- comparing gross payout without inflation
Fixed annuity vs variable annuity
Fixed annuity uses a guaranteed or stated rate. Variable annuity depends on investment performance and fees.
Fixed is more predictable. Variable has more outcome range.
FAQs
What is fixed annuity?
A fixed annuity is an annuity with guaranteed or stated interest crediting.
How do you calculate fixed annuity value?
Compound the premium during accumulation, then calculate payout from the accumulated value.
What is a good fixed annuity rate?
A good rate is competitive for the guarantee period and contract terms.
What is the difference between fixed and variable annuity?
Fixed is predictable. Variable depends on market-linked returns and fees.
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