Variable Annuity Calculator

Your details

Lump sum you deposit into the annuity today.
USD
Additional amount added at the start of each year. Set to 0 for a single-premium annuity.
USD
How many years the annuity grows before you take income or surrender it.
years
Blended annual return from your sub-account mix before any fees are deducted.
%
Annual insurance charge that covers the death benefit guarantee. Typical range: 0.50-1.75 % depending on share class.
%
Annual fee for record-keeping and contract servicing. Typically 0.10-0.30 %.
%
Fund management fee inside the sub-account, equivalent to a mutual fund expense ratio. Typically 0.50-1.50 %.
%
Cost of optional benefit riders such as a Guaranteed Lifetime Withdrawal Benefit (GLWB). Set to 0 if not applicable.
%
Your marginal federal income tax rate today, used for the taxable-account comparison.
%
Marginal tax rate when you withdraw. Gains above cost basis are taxed as ordinary income.
%
Number of years the surrender charge applies. Set 0 for no surrender period (A-share or I-share contracts).
years
The charge in the first year, which declines linearly to 0 by the end of the surrender period.
%
Set this to model an early withdrawal BEFORE the surrender period ends. Set 0 or equal to the surrender period to skip the penalty.
years
Period-certain payout length: the number of years over which the accumulated value is paid out as equal annual income.
years
Expected annual return on remaining balance during the payout phase (net of fees).
%
Currency
Annuity value (pre-tax)Fees outweigh tax benefit
$333,676.02

Accumulated contract value at the end of the accumulation period, before income tax on gains.

Annuity value (after tax)$297,667.29
Total fees paid$72,557.41
Fee drag on return2.15%
Taxable account value$305,269.96
Tax-deferral advantage-$7,602.67
Surrender charge (if withdrawn early)$23,357.32
Annual income (payout phase)$20,184.21
Monthly income$1,682.02
Variable annuity$297,667.29
Taxable account$305,269.96

Tax-deferral advantage: -$7,602.67

After 20 years and all fees, your annuity is worth $297,667 after tax, behind a comparable taxable account by $7,603.

  • Your total annual fee drag is 2.15 %, which reduces your gross return of 7.0 % to a net 4.85 % per year.
  • Over 20 years the fee stack costs approximately $72,557 in compounded growth that never reaches your account.
  • The annuity's fees erode $7,603 more than the tax deferral saves. A low-cost taxable account or IRA may outperform for your inputs.
  • Annuitized over the payout period, the after-tax balance provides roughly $1,682 per month in gross income.

Next stepConfirm the actual fee schedule with your annuity contract before finalizing. Rider costs in particular vary widely by insurer and benefit type.

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