Deferred Annuity Calculator

Use our free deferred annuity calculator to project your annuity through both the accumulation and payout phases. See how your premium grows during deferral and what income it generates when payments begin.

Financial

Currency

Current Age

years

Annuity Start Age

years

Single Premium

Accumulation Phase Return (%)

Payout Phase Return (%)

Payout Period (years)

years

Formula

Plan your deferred annuity investment with this two-phase calculator. See how your single premium grows during the accumulation period and what monthly income it generates once payouts begin.

Accumulation: FV = Premium × (1+r)^t; Payout: PMT = FV × [r(1+r)^n]/[(1+r)^n-1]

Percentage: The percentage value you want to apply

Number: The original number or value

Result: The calculated result

How It Works

1Enter your current age and the age you want annuity payments to start.
2Input your single premium and expected return during accumulation.
3Set the expected return during the payout phase and payout period.
4See the accumulated value at annuity start date.
5Review your monthly and annual payout amounts.

Examples

40 years old, annuity starts at 65, $200k premium, 6% accumulation, 4% payout, 25 year payout

1.Accumulation years = 25
2.Accumulated value = $200k × (1.06)^25 = $858,000
3.Monthly payout starting at 65 ≈ $4,500
4.Total payout over 25 years ≈ $1.35M

Result: $858,000

Frequently Asked Questions

A deferred annuity has two phases: accumulation (your money grows tax-deferred) and payout (you receive regular income). It is designed to provide retirement income starting at a future date.

During accumulation, your premium grows at the stated return rate, compounded over time. Growth is tax-deferred until withdrawal. Longer accumulation periods significantly increase the final value.

Early withdrawals may be subject to surrender charges and tax penalties (10% if before age 59½). Most annuities allow penalty-free withdrawals of 10% per year after the first year.

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Deferred Annuity Guide

CalculateMe Team

Last updated: 2026-07-16

How It Works

1Enter your current age and the age you want annuity payments to start.

2Input your single premium and expected return during accumulation.

3Set the expected return during the payout phase and payout period.

4See the accumulated value at annuity start date.

5Review your monthly and annual payout amounts.

Frequently Asked Questions

A deferred annuity has two phases: accumulation (your money grows tax-deferred) and payout (you receive regular income). It is designed to provide retirement income starting at a future date.

During accumulation, your premium grows at the stated return rate, compounded over time. Growth is tax-deferred until withdrawal. Longer accumulation periods significantly increase the final value.

Early withdrawals may be subject to surrender charges and tax penalties (10% if before age 59½). Most annuities allow penalty-free withdrawals of 10% per year after the first year.

Deferred Annuity Calculator

Formula

How It Works

Examples

40 years old, annuity starts at 65, $200k premium, 6% accumulation, 4% payout, 25 year payout

Frequently Asked Questions

What is a deferred annuity?

How does the accumulation phase work?

What happens if I need money before the payout phase?

Related Calculators

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Deferred Annuity Calculator

Formula

How It Works

Examples

40 years old, annuity starts at 65, $200k premium, 6% accumulation, 4% payout, 25 year payout

Frequently Asked Questions

What is a deferred annuity?

How does the accumulation phase work?

What happens if I need money before the payout phase?

Related Calculators

Related Articles