Understanding the annuity calculator
An annuity is a contract with an insurer that grows money during an accumulation phase and can later convert it into a stream of guaranteed payments. This calculator models the accumulation side: a starting principal plus monthly additions compounding at a fixed rate, which matches how a fixed annuity credits interest.
Annuities trade return for certainty, and the details vary enormously fixed, indexed, and variable products behave very differently, and surrender charges can lock money in for years. Fees deserve particular attention, since a 1 to 2% annual expense quietly consumes a large share of the growth this calculator projects.
Results are estimates for education only and are not financial advice.