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Annuity Calculator
Project the future value of an annuity with regular contributions and tax-deferred growth.
Currency
Investment
Lump sum to start the annuity
Regular contribution amount
Growth
Expected annual return (fixed rate assumption)
1 years40 years
Tax Comparison
Compare to Taxable
Show tax-deferred advantage
For taxable account comparison
Future Value
$336,020.50
Total Contributions
$170,000.00
Total Growth
$166,020.50
+49.40784907846325%
Value Composition
Initial Investment(14.9%)
$50,000.00Periodic Contributions(35.7%)
$120,000.00Investment Growth(49.4%)
$166,020.50Tax-Deferred Advantage
With a 25% tax rate, tax-deferred growth allows your investments to compound without annual tax drag. The full $336,020.50 grows tax-free until withdrawal.
Growth Schedule
| Year | Contributions | Growth | Balance |
|---|---|---|---|
| 1 | $6,000.00 | $2,650.00 | $58,650.00 |
| 2 | $6,000.00 | $3,082.50 | $67,732.50 |
| 3 | $6,000.00 | $3,536.63 | $77,269.13 |
| 4 | $6,000.00 | $4,013.46 | $87,282.58 |
| 5 | $6,000.00 | $4,514.13 | $97,796.71 |
| 6 | $6,000.00 | $5,039.84 | $108,836.55 |
| 7 | $6,000.00 | $5,591.83 | $120,428.37 |
| 8 | $6,000.00 | $6,171.42 | $132,599.79 |
| 9 | $6,000.00 | $6,779.99 | $145,379.78 |
| 10 | $6,000.00 | $7,418.99 | $158,798.77 |
| 11 | $6,000.00 | $8,089.94 | $172,888.71 |
| 12 | $6,000.00 | $8,794.44 | $187,683.14 |
| 13 | $6,000.00 | $9,534.16 | $203,217.30 |
| 14 | $6,000.00 | $10,310.87 | $219,528.17 |
| 15 | $6,000.00 | $11,126.41 | $236,654.58 |
| 16 | $6,000.00 | $11,982.73 | $254,637.30 |
| 17 | $6,000.00 | $12,881.87 | $273,519.17 |
| 18 | $6,000.00 | $13,825.96 | $293,345.13 |
| 19 | $6,000.00 | $14,817.26 | $314,162.38 |
| 20 | $6,000.00 | $15,858.12 | $336,020.50 |
Understanding Annuity Growth
Future Value Formula
FV = PV(1+r)^n + PMT[((1+r)^n - 1) / r]
Combines the future value of your initial investment with the future value of your periodic contributions (ordinary annuity).
Tax-Deferred Advantage
Tax-deferred growth means you don't pay taxes on earnings until withdrawal. This allows compound growth on money that would otherwise go to taxes.
- Annuity: Growth is not taxed annually
- Taxable: Dividends and gains taxed each year
- Over time, this difference compounds significantly