What is the annuity payout calculator?

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.

How much do annuities cost?

Commissions –Annuities are generally sold by insurance brokers who charge a fee of anywhere from 1% for the most basic annuity to as much as 10% for complex annuities indexed to the stock market. In general, the simpler the annuity structure or the shorter the surrender charge period, the lower the commission.

How do you calculate an annuity due?

So for an annuity due where you receive payments at the beginning of each period, you’d need to invest less today to generate the same future cash flow compared to an ordinary annuity with payments at the end. The formula for the present value of an annuity due is: PVAnnuity Due = C x [ (1 – (1 + i)^-n) / i] x (1 + i)