Fixed Index Annuity Calculator
Fixed Annuity Information:
This is the starting amount you plan to deposit into your fixed annuity.
Starting balance:
The yearly amount you intend to contribute to your annuity.
Annual contribution:
Your current age.
Current age:
The age at which you plan to begin withdrawing from your annuity balance. It's assumed that no contributions will be made in the same year withdrawals start. For instance, if withdrawals begin at 65, your last contribution would have been at age 64.
Withdrawal age:
The current marginal tax rate you anticipate paying on your taxable investments.
Current tax rate:
The marginal tax rate you expect to apply to your investments when you retire.
Retirement tax rate:
The annual return rate you predict if these funds were placed in a taxable account. This calculation assumes returns are compounded yearly and contributions occur at the beginning of each year.
Taxable account's return:
Interest Rate Information:
This represents the guaranteed initial interest rate for your fixed annuity.
Initial interest rate:
The duration, in years, that the initial interest rate will remain guaranteed.
Years initial rate is guaranteed:
The expected average interest rate after the initial guaranteed rate period ends.
Expected average interest rate:
The guaranteed interest rate that will apply once the initial rate period concludes.
Minimum guaranteed rate:
Expected Fixed Annuity:$276,212.28
Minimum Fixed Annuity:$127,181.94
Taxed Fixed Annuity:$157,512.42
If you’re looking for a secure investment, fixed index annuities are a popular choice. They provide long-term and tax-deferred growth with steady returns. Combined with riders, fixed annuities can provide a guaranteed lifetime income and cover the cost of essential expenses in retirement.
If a fixed index annuity sounds like the right fit, you might be wondering how much you will receive and whether your initial investment is enough to ensure a secure financial retirement in the future.
Use our fixed index annuity rates calculator below. Simply input all the necessary information and see how much you can earn!
Fixed Index Annuity Calculator
A fixed index annuity rates calculator will provide you with estimated earnings based on the data you provide. You can change the inputs as many times as you want to see how much you should invest to receive the desired payouts.
Definitions of Fixed Index Annuity Calculator Terms
Our fixed-rate annuity calculator asks for the most important information. If some terms are unknown, check out their definitions below.
Fixed Annuity
A fixed annuity is a financial tool that helps future retirees grow their savings and ensure a financially secure future. It usually features a guaranteed minimum rate that ensures steady growth and is often considered a safe investment option.
Our partners offer fixed index annuities with penalty-free 10% withdrawal options, market protection, and short- or long-contract terms to suit your needs.
Starting Balance
Input the initial investment you contribute to the annuity.
Annual Contribution
Input an annual contribution you will make to the annuity.
Current Age
Your current age of purchasing the annuity.
Withdrawal Age
The age you expect to start taking money out of your annuity. By default, our fixed-term annuity calculator assumes your withdrawal age is the year after your final contribution.
For example, if your contribution age is set at 70, the calculator treats age 69 as your last year of contributions.
Current Tax Rate
Enter the marginal tax rate you currently pay on your taxable investments.
Retirement Tax Rate
Enter the marginal tax rate you anticipate paying on your investments after retirement.
Surrender Charges
Surrender charges are the fees you pay if you take money out of your annuity early. Enter the percentage of penalties that are provided in your selected annuity.
Taxable Account's Expected Rate of Return
This is the annual rate of return you expect to earn if you deposit your money into a taxable account.
Our calculator is configured to assume that your returns are compounded annually and that you make contributions at the beginning of each year.
Initial Interest Rate
Enter the initial guaranteed interest rate of your fixed annuity.
Years Initial Rate Is Guaranteed
Input the number of years your initial interest rate is guaranteed.
Expected Average Interest Rate
Provide the fixed rate annuity calculator with the expected interest rate that you will have after the initial rate is no longer guaranteed.
Minimum Guaranteed Interest Rate
Add the minimum guaranteed interest rate you will have after the initial rate is over.
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FREQUENTLY ASKED QUESTIONS
What is a fixed-indexed annuity?
A fixed-index annuity is a financial product that offers returns that are linked to the performance of a market index. Fixed annuities typically provide a stable growth rate of investments and a guaranteed minimum interest rate, among other features.
What is the minimum investment for a fixed annuity?
The minimum investment for a fixed annuity depends on the insurance company and annuity contract, but typically it starts around $5,000 to $10,000.
How much does a $100,000 fixed annuity pay per month?
The monthly payments from a $100,000 fixed annuity will depend on the interest rate, term length, and whether it’s a single or joint payout. For example, if you are 65, own an annuity with a lifetime payout, and your interest rate is 3%, your projected earnings might be around $500-$600 per month. However, the exact amount will be based on your specific annuity contract type.
How is fixed annuity taxed?
Distributions from nonqualified fixed annuities are taxed on deferred earnings, with lifetime payouts splitting payments into taxable earnings and untaxed principal.
For term-based payouts (e.g., 10 years), earnings are taxed first, while the principal remains untaxed.
Withdrawals before age 59½ incur a 10% penalty plus income tax on taxable amounts. Annuities in IRAs require minimum distributions starting by April after you turn 73.
Annuity Expert
Jeremiah Konger
PS – Here’s 3 ways we can help you learn more about annuities.
1. Watch Videos on How to Identify The Highest Paying Protected Income & Growth Annuities.
2. Watch Videos That Reveal What to Look For When Buying A Protected Growth Annuity.
3. Click Here To Access Our Annuity Review Vault To Compare The Pro’s and Con’s of Dozens of Annuities.
Annuity Association is the leader in providing Independent Annuity recommendations for protected income, safe growth and other benefits in retirement.
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