Fixed Annuity Calculator
A fixed annuity guarantees your interest rate for the contract term. Enter your deposit and rate — see exactly how your money will grow and what you'll receive.
About this tool
Fixed annuities offer a guaranteed interest rate for a fixed term — similar to a CD but with tax deferral. Unlike variable annuities, there's no market exposure. This calculator shows accumulation and payout for a fixed rate product.
How to use it
Quick steps to get the most out of this utility.
- 1
Enter deposit and fixed rate
Your premium and the guaranteed interest rate in the contract.
- 2
Set accumulation term
Years until the contract matures or you annuitize.
- 3
Choose accumulation or payout mode
See lump sum at maturity or projected income stream.
- 4
Compare to alternatives
How the fixed annuity stacks up vs a CD or bond.
Fixed Annuity vs Variable Annuity: The Core Trade-off
A fixed annuity gives you certainty: a guaranteed rate, no market risk, and predictable growth. A variable annuity exposes you to market risk — you can earn more if markets do well, but can also lose. For conservative savers approaching retirement, the fixed annuity's guarantee is often worth the opportunity cost. For younger savers with long horizons, variable annuities (or index annuities) may offer better long-term outcomes.
Frequently asked questions
How is a fixed annuity different from a CD?+
A fixed annuity and a CD both offer a guaranteed interest rate for a fixed term. Key differences: (1) annuity growth is tax-deferred (you don't pay tax until withdrawal); (2) annuities typically have surrender charges vs. CD early-withdrawal penalties; (3) annuities are issued by insurance companies (backed by state guaranty funds, not FDIC); (4) annuities have no contribution limits.
What is a MYGA?+
MYGA (Multi-Year Guaranteed Annuity) is a type of fixed annuity that locks in an interest rate for a specified term — typically 3, 5, or 7 years. It's the annuity equivalent of a CD. At the end of the term, you can withdraw, renew, or convert to income. MYGAs have become popular when rates are elevated.
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