Annuity Investment Calculator

Everyone wants a secure life especially after crossing the age of 50 when the retirement time is near and there is no other type of employment to rely on for the rest of life. One of the best ways to make the future secure is to invest the lump sum of money somewhere and then receive the monthly payments for the rest of life.

What is the annuity investment calculator?

An annuity investment calculator is a great tool for investors who want to invest the money somewhere and then receive the monthly amount. This calculator tells them how much money they will receive every month or year after making a particular amount of investment. In other words, you can save money for a long period of time. Moreover, your saving remains tax-deferred.


The amount of investment necessary to be made for getting the desired level of monthly income can also be calculated by using the annuity investment calculator.

What is annuity?

An annuity is a stream of money a person receives for the rest of his life when he purchases the annuity from the insurance company.

There are different annuity contracts. Some of them are very simple while some are complex. No matter the annuity to be purchased is simple or complex; there are a lot of benefits one can avail after purchasing the annuity.

There is no deduction on the money you deposit in the form of investment. If you want to increase your savings which are free from tax, you can opt for the annuity

What is included in the annuity calculator?

  1. Amount of investment:

The amount you want to contribute to the annuity is required to be entered. It is also known as starting balance

  1. Annual investment:

If you have chosen a plan that requires you to make the contribution each year, you will be required to enter the value of the annual contribution

  1. Current age and age when you withdraw the contribution

The calculator will also ask you to provide your age when you have actually started making the contribution and also your age when you first withdrew your annuity balance. Withdrawal age is necessary because it is the time when you stop making the contributions and start consuming the funds.

  1. The current rate of tax:

When you are making the contributions, you are paying the tax since your investment is not tax-deductible. The rate at which you are paying the tax is important to be known.

  1. Interest rate:

The calculator also asks you to provide the interest rate on which you are making the contribution. You are also required to tell the annual interest rate. Furthermore, the expected interest rate is also required to be known.

You can find different types of annuity investment calculators on different websites. Some of these are very simple containing a few fields and generating results quickly. Whereas, some are too much complex that asks too many details before calculating the annuity investment.



Annuity investment calculator template


Format: MS Excel [.xls& .xlsx]
File Size:45 KB