Intro to the Best Annuity Calculators: What is an Annuity?

An annuity is an insurance product that’s typically used as part of a retirement strategy because it provides income that is steady, stable, and secure. These are some of the features of a retirement annuity that make it so popular among investors and retirees.

An annuity is defined as a contract between the buyer and an insurance company, and the buyer makes a lump sum payment. Then, the insurance company selling the annuity provides income for a period of time, provides for asset growth, and there are inclusions of death benefits and long-term care benefits.

When you use an annuity calculator or a retirement annuity calculator, you will see that you can opt to receive payments monthly, quarterly, annually, or as a lump sum. When you use a future value of annuity calculator, you’ll determine the size of the payments you receive based on factors such as how long you paid the insurance company.

Present Value Annuity Calculator

Award Emblem: Top 6 Best Annuity Calculators

There are different types of annuity calculator tools you may want to use to decide whether a retirement annuity is a good option for you or to determine the value of an existing annuity.

For example, with a present value annuity calculator, you can see how much your payments will be worth in current dollar value. There are also future value of annuity calculator tools, which include inputs such as the interest rate per time period, the number of time periods, and the present value of the annuity. These future value of annuity calculator tools let users see what the value of their annuity will be in the future.

The following annuity calculator ranking and review covers different types of annuity calculators, and also other detailed information about retirement annuity options.

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AdvisoryHQ’s List of Top 6 Best Annuity Calculators

List is sorted alphabetically (click any of the calculator names below to go directly to the detailed review section for that annuity calculator):

Top 6 Best Annuity Calculators

Annuity Calculators

Used For


Best For


Calculating fixed annuities

Fixed annuity inputs

Interest rate information

People who want to see if a fixed annuity will be a good part of their retirement plan


Comparing fixed length and fixed payment options


Interest return/rate


Years to payout or payout amount

Payout frequency

Consumers with annuities who want to compare payout options


Determining amount needed to generate a specific payment

Withdrawal amount

Interval between withdrawals

Starting principal

Annual growth rate

Annuity length

People just getting started searching for the right annuity or planning for payouts

Future Value

Calculating future value of an annuity

Number of periods

Interest rate and compounding intervals

Annuity payment information

People with an existing annuity who want to ensure they are going to be able to meet their future financial goals


Calculating immediate annuity payments

Amount to invest

Life expectancy

Annual rate of return

Frequency of payments

Consumers approaching retirement or already in retirement

Financial Mentor

Calculating payments in today’s present value

Payment amount

Interest rate

Number of years

Payment interval

People who want to see what their annuity or lump sum payment value will be in present dollar value

Table: Top 6 Annuity Calculators | Above list is sorted alphabetically

What Are the Types of Annuities?

Before exploring the use of different types of annuity calculator tools, it’s valuable first to have an understanding of how annuities work and the various types of annuities.

To begin, there are two primary types of annuity categories, which are deferred and immediate.

With a deferred annuity, your money is invested, and then you begin making withdrawals at a pre-determined time, which for most people, is when they reach retirement age. This would mean you would likely want to use an annuity investment calculator or perhaps an annuity interest calculator, to see how much growth your retirement annuity would have over time.

Annuity Calculator

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There are also immediate annuities, and here you would use an immediate annuity calculator. With this type of annuity, you would receive payments right after making an initial investment.

If you have a deferred annuity, it can often be changed to an immediate annuity to begin receiving payments.

Within the two broad categories of retirement annuity options, there are also two other categories, which are fixed and variable.

With a fixed annuity calculator, you would be able to calculate gains that are guaranteed each year and not based on interest rates or changes in the market. This isn’t considered a regulated investment product but is instead only a type of insurance.

There are also variable annuities, which include a value that varies based on account performance linked to your initial payment. There is a level of risk with variable annuities, and these products will often carry higher fees.

What Are the Disadvantages of Annuities?

When you use an annuity calculator including a present value annuity calculator or a future value of annuity calculator, you are likely trying to determine whether this insurance and financial product is right for you.

It should be noted to anyone searching for an annuity payment calculator that there are potential disadvantages to annuities.

First of all, many annuities are sold by brokers or salespeople, and you will often have to pay them a commission.

Also, if you start taking money from your annuity within the first few years after buying it, there may be a penalty fee, often called a surrender charge.

With variable annuities, there are also expensive annual fees that can include a yearly insurance charge, investment management fees, and insurance rider fees.

What Is an Immediate Annuity?

The concept of an immediate annuity and an immediate annuity calculator was already briefly mentioned above, but it’s worth exploring in a bit more detail before continuing to the rest of this ranking of the best annuity calculators.

An immediate annuity may also be called an income annuity so that you might use an income annuity calculator. These annuities are similar to a life insurance policy, except the concept is reversed. The buyer pays a lump sum to an insurance company, and they then receive regular income until they die. An annuity income calculator can be used to calculate annuity payments over time.

Since an immediate annuity starts paying right away, these are typically purchased by people who are already in retirement.

The advantages include the ability to maintain a steady stream of income for the duration of your life, and it can help with budgeting and ensuring that bills and costs are covered. Buyers can also opt for a variable immediate annuity, which can be a good way to protect yourself against inflation by investing in portfolios similar to mutual funds.

With a fixed immediate annuity, it’s important to use an annuity payment calculator or a fixed annuity calculator to see how inflation could impact your income. If you opt for a fixed annuity, the effects of inflation are one of the biggest downsides.

With a variable immediate annuity, you may be able to protect against inflation, but depending on market factors, your retirement annuity may actually lose value, so there are significant risks involved here as well.

AdvisoryHQ’s Selection Methodology

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Detailed Review—Top-Ranking Annuity Calculator Tools

Below, please find the detailed review of each calculator on our list of the top tools to calculate annuity payments. We have highlighted some of the factors that allowed these retirement annuity calculator tools to score so well in our selection ranking.

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AARP Review

AARP is a non-profit social welfare group that has a membership of more than 38 million. AARP works to provide information and resources related to health care, employment, and income security. AARP specifically works to serve the needs and interests of Americans aged 50 and above.

Future Value Of Annuity Calculator

Image Source: AARP

AARP also offers a variety of financial tools and calculators to help members and the public make sound financial decisions, and among these is their Fixed Annuity Calculator, focusing on tax-deferred fixed annuity investments.

Key Factors That Led to Our Ranking of This as a Best Annuity Calculator

Advantages of this fixed annuity calculator leading to its ranking on this list of the best annuity calculators and tools to calculate annuity payments are listed below.

Features and Use

This fixed annuity calculator from AARP focuses on these secure, tax-deferred annuity options. It incorporates the fact that fixed annuities have a guaranteed minimum interest rate, and the objective of the annuity calculator is to see how a fixed annuity could fit into an overall retirement plan.

Key fixed annuity inputs that are used with this retirement annuity calculator include:

  • Starting balance
  • Annual contribution
  • Current age
  • Withdrawal age
  • Current tax rate
  • Taxable account’s return
  • Initial interest rate
  • Year initial rate is guaranteed
  • Expected average interest rate
  • Minimum guaranteed rate

The results include a calculation of the anticipated fixed annuity total at withdrawal, and there is a chart that features account balances over time, including surrender charges.


This is a great future value annuity calculator and fixed annuity calculator for several reasons. The first advantage of this retirement annuity calculation tool is the simplified way it performs as a future value of annuity calculator. It’s simple to understand the fixed annuity total at withdrawal.

Another benefit of this fixed annuity calculator is the fact that it shows account balances over time including surrender charges. It also includes a line graph with the expected fixed annuity value, the minimum fixed annuity value, and the taxable account value, giving a complete overview.

Users can then opt to view an even more in-depth report that highlights assumptions used in the calculation of the provided value, such as assumed interest rate and before- and after-tax values.

Uniquely, the AARP Fixed Annuity Calculator also features information such as details comparing a fixed annuity to an IRA and a breakdown of fixed annuity balances by year.

Who It’s Good For

This fixed annuity calculator is useful for people who are still considering an annuity and who may have many years before they would start taking payouts since it provides such in-depth, long-term reporting and information.

It’s also good if you’re relatively new to the concept of annuities and you want to learn more because it includes highly detailed results with explanations, definitions of key terms, and other pertinent information that could help a user decide whether an annuity is the right retirement option for them.

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Calculator.net Review

The Annuity Payout Calculator from Calculator.net is an excellent tool designed to help users calculate annuity payout amounts. Calculator.net itself is a fantastic resource for a variety of free calculators. Calculator.net’s purpose is described as being a provider of comprehensive, convenient, and free online calculators, most of which are developed in-house.

Retirement Annuity Calculator

Image Source: Calculator.net

The topic areas covered by these calculators include weight loss, math, pregnancy, health, and personal finance. One of the leading calculators on this site is the annuity payment calculator featured on this ranking.

Key Factors That Led to Our Ranking of This as a Best Annuity Payment Calculator

Features, benefits, and uses of this annuity payment calculator are listed below.

Features and Use

As mentioned above, this is an annuity payment calculator. It’s a straightforward way for users to calculate the annuity payout amount either for a fixed payout length or to calculate the annuity payout length for a fixed payout amount.

There are two sets of inputs. The first set of inputs with this annuity payment calculator offers the option to calculate annuity payments based on a fixed length. Input values here include:

  • Starting principal
  • Interest return/rate
  • Inflation rate
  • Years to payout
  • Payout frequency

The results then show how much can be withdrawn monthly.

The other option available with this annuity payment calculator and retirement annuity calculator is the ability to set a fixed payment and see how long you could withdraw that amount. Input values with this area of the annuity payment calculator and annuity income calculator include:

  • Starting principal
  • Interest return/rate
  • Inflation rate
  • Payout amount
  • Payout frequency


One benefit of this annuity income calculator is the ability to compare fixed length versus fixed payment options. It gives users two different views of their annuity so they can experiment with different options and see what’s going to work best for their financial needs.

This income annuity calculator is also interesting because it breaks down how much principal versus interest comprise an annuity.

This annuity payment calculator also lets users have the flexibility to decide between monthly or annual payments, and the inflation rate can be added to the annuity payout calculator, to show true worth over time.

There is also a balanced schedule that breaks down amounts in detail.

Who It’s Good For

This annuity income calculator is useful for a user who already has an annuity and wants to determine the best withdrawal schedule. It’s also good if you’re considering an annuity, and you want to look at long-term payout options.

If you’re on the verge of beginning your annuity payout phase, it’s a good calculator for planning and to experiment to determine which type of payout options will be most valuable and advantageous for you.

Bankrate Review

The Bankrate Annuity Calculator is an annuity investment calculator that shows how payments would be generated at a specific return. Bankrate is a leading online resource for consumers who want information about all things related to personal finance. Some of the topics covered by Bankrate include mortgages, refinancing, credit cards, personal loans, and retirement products.

In addition to calculators and financial planning tools, Bankrate offers access to original content and updated rate information on a range of financial products.

Retirement Annuity

Image Source: Bankrate

Key Factors That Led to Our Ranking of This as a Best Retirement Annuity Calculator

Some of the reasons this annuity calculator is ranked as the best future value of annuity calculator are listed below.

Features and Use

The purpose of this retirement annuity calculator and income annuity calculator is to do the following:

  • Show the payment amount that would deplete an annuity fund in a specified number of years
  • The amount needed to generate a specific payment
  • The number of years an investment would generate payments at a specified return

To do calculations using this income annuity calculator and annuity investment calculator, users add a withdrawal amount they would like to take and the interval between withdrawals. For example, you might add $1,000 and monthly withdrawals.

Then, users add a starting principal and the length of annuity in years, or the annual growth rate.

Leaving one of the input fields blank will allow users to determine that value.


The primary benefit of this annuity calculator is its flexibility. Simply by leaving individual values blank, you determine quite a few different calculations that let you discover which annuity options might be best for you.

This annuity income calculator and retirement annuity calculator is different from many of the other options on this ranking of present value annuity calculator tools and future value of annuity calculator tools because of that flexibility and versatility.

You can discover the length of annuity you would need to get the withdrawal amount you want, as well as the starting principal.

It also breaks down your balance based on the intervals you select between withdrawals.

Another benefit of this retirement annuity calculator is the fact that it’s simple to use and easy to understand, with minimal inputs required for detailed calculations.

Who It’s Good For

This is a basic retirement annuity calculator and annuity income calculator that’s good for anyone who’s considering an annuity as part of their retirement strategy.

It’s good if you’re currently in the process of shopping for annuities and you want to experiment with different values to ensure you make the right decision.

It’s also a good annuity calculator if you’re planning on taking payouts soon since it will show you what you need to withdrawal the amount you require.

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Calculator Soup Review

Calculator Soup is an online calculator resource with free tools that are designed to help users with everything from math formulas and conversions to financial situations such as loans and mortgages. The site takes requests and suggestions from users as well, and categories include general math, loans, interest and APR, sales and retail, money, pay and taxes, and personal finance and accounting.

Immediate Annuity Calculator

Image Source: Calculator Soup

Key Factors That Led to Our Ranking of This as a Best Future Value of Annuity Calculator

Below are features and benefits of the Future Value of Annuity Calculator from Calculator Soup.

Features and Use

The future value refers to the sum of cash that is going to be paid on a specific future date. An annuity due refers to a set of payments made at the beginning of each period.

This future value of annuity calculator features pretty in-depth input required for calculations.

These input values include:

  • Number of periods
  • Rate per period
  • Compounding times per period
  • Payment amount
  • Growth per payment
  • Number of payments per period
  • Payment of each period

Then, based on these values, the result is a simple numerical value of the estimated future value of the growing ordinary annuity. This is an excellent annuity interest calculator and general annuity investment calculator.


The first benefit of this future value of annuity calculator and annuity interest calculator is the ability to see the growth rate of an annuity in clear terms. It gives you a realistic estimation of the worth of your annuity, with the future value representing the future value of any present value cash flows.

It’s also beneficial because it includes a glossary of terms and formulas relevant to calculate annuity interest and future value.

For example, the glossary of terms includes easy-to-understand definitions of the period, interest rate, payment amount, growth rate, and payments per period.

There is also a detailed section showing the future value annuity formulas, so you can see how the results are reached.

Who It’s Good For

This future value of annuity calculator is ideal for use by people who want to see whether the amount they currently have in an interest-earning account will meet their future savings objectives.

If they use the future value of annuity calculator and determine the lump sum balance wouldn’t be enough to reach their goals, they would then use the calculator to see how much and how frequently they would need to add to their account to make up for the difference.

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Dinkytown.net Review

An immediate annuity was described in detail above, and ultimately it’s an insurance product sold to provide the buyer with a stream of income for the entirety of their life. With some immediate annuities, payments begin immediately, while others may allow for deferral for up to a year.

Annuity Payment Calculator

Image Source: Dinkytown.net

The Immediate Annuity Calculator from Dinkytown.net is designed to show users what their estimated monthly payments might look like, were they to purchase an immediate annuity. In general, Dinkytown.net offers a range of financial calculators that are easy to use and convenient.

Key Factors That Led to Our Ranking of This as a Top Retirement Annuity Calculator

Uses, features, and benefits of this immediate annuity calculator that resulted in its ranking on this list of the best annuity calculators are detailed below.

Features and Uses

This immediate annuity calculator shows what monthly payments might be for an immediate annuity.

Input values needed for this retirement annuity calculator and income annuity calculator include:

  • Amount to invest (principal)
  • Your life expectancy in years
  • Annual rate of return
  • Frequency of payments

There is also the option to delay the start of payments by one year to figure the calculation.

Options for payment frequency include monthly, quarterly, and annually, and the calculator assumes distribution occurs at the beginning of each period.

The initial results of this immediate annuity calculator and annuity payment calculator are shown in line graph form, with cumulative payments listed by year.

There is also the option to see a more detailed report.


One advantage of this immediate annuity calculator is the ability to see what your payments will be based on your expected lifespan. This gives a more realistic view of what you might need to initially invest to receive the monthly payments you need.

It’s also advantageous because there are two different payment schedule options, and the results are shown numerically as well as in a graph.

This immediate annuity calculator not only shows expected monthly payments based on your principal, life expectancy, and interest, but it gives you a sum of the total distributions made after the period of time you enter.

The cumulative payments are also broken down by year in a convenient chart.

Who It’s Good For

While some of the annuity calculators and annuity investment calculator options on this ranking are designed for younger people who might have many years before they start withdrawing from an annuity, this immediate annuity calculator is unique because it’s designed for older people or people closer to making withdrawals.

This immediate annuity calculator and annuity income calculator is good for people who are either approaching retirement or who are already in retirement.

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Financial Mentor Review

Financial Mentor is a website designed to help visitors make smarter investment and retirement decisions and gain more financial success and independence. They do this by offering a range of smart, intuitive financial calculators, as well as original resources and content on popular topics of personal finance.

Fixed Annuity Calculator

Image Source: Financial Mentor

The Present Value of Annuity Calculator is designed to show users the current value of a set of equal cash flows that they will receive in the future. This is unique from a future value of annuity calculator, which shows what the estimated value of these payments will be in the future.

Key Factors That Led to Our Ranking of This as a Best Present Value Annuity Calculator

Among all of the annuity calculator and annuity income calculator options available, the following are features and uses of this present value of annuity calculator that led to its inclusion here.

Features and Uses

As mentioned, the key use of this present value annuity calculator is to determine the present value of future annuity payments. It calculates equal cash payments, and it will show the user what their future income stream coming from their retirement annuity will be in terms of today’s dollar.

The input required with this present value annuity calculator is simple and includes:

  • Payment amount
  • Interest rate
  • Number of years
  • Payment interval (for example, annually)

With just these four input criteria, users can then calculate the present value of an annuity quickly and easily.

The result is then presented as a number estimate.

Some of the factors that determine the results of the present value annuity calculator include the interest rate. For example, the higher the interest rate, the lower the present value.


One of the advantages of using this present value annuity calculator is its simplicity. There are many annuity calculator options that are very complex and require quite a few different input values, but this present value annuity calculator requires only four input values.

This present value annuity calculator and annuity interest calculator can also be used for reasons other than as an annuity payment calculator. This retirement annuity calculator can also actually be used for court settlements, other retirement funding, or loan payments.

This present value annuity calculator and annuity interest calculator is also valuable because it provides a glossary of terms related to the present value of annuities. For example, some of the defined terms include payment/withdrawal amount, annual interest rate, and present value of an annuity.

You can also opt to have your results emailed with this convenient present value annuity calculator.

Who It’s Good For

This present value annuity calculator and annuity payment calculator is good not only for anyone who’s considering an annuity for the future and wants to see the value it will have in today’s dollars, but it’s also good for people who want to look at calculations involving a variety of different types of lump sum payments.

It’s not necessarily an ideal annuity calculator if you want a detailed breakdown of monthly payments or a graphical representation of results, however.

This tool to calculate annuity value is better if you want something fast and convenient that will provide you with a single value.

Conclusion—Top 6 Retirement Annuity Calculator Tools

A retirement annuity can present a mixed opportunity when it comes to insurance and personal finance.

There are both advantages and disadvantages to annuities. For some people, a retirement annuity can be valuable to receive guaranteed payments over time, but at the same time, these products can also have high fees and may carry some level of risk.

An annuity calculator is an excellent tool to help consumers determine whether an annuity is right for them.

The above ranking and review includes a present value annuity calculator, a future value of annuity calculator, a fixed annuity calculator, and an annuity payment calculator.

Each of these annuity calculators can help people determine the value an annuity could bring to them financially.

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