Archived calculator

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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