Deferred Annuity Calculator - Future Value

A deferred annuity is funded with one or more deposits and then left to compound before payouts begin. The deferred annuity calculator estimates the accumulated value at the end of that waiting period, not the later withdrawal stream. Retirement savers, insurance illustrators, and planners use the future-value figure to compare contribution size, interest rate, payment timing, and how long money sits after deposits stop. For an ordinary annuity the future value of the contribution phase is payment × [((1 + i)^n − 1) ÷ i], where i is the periodic rate and n is the number of payments. An annuity due multiplies that result by (1 + i) because each payment is made at the beginning of the period. After the last contribution, the balance compounds for the deferral: that amount is multiplied by (1 + i)^(deferral years × payments per year). If the interest rate is zero, the contribution-phase value equals payment × n and the deferral does not add growth. Use the estimate when comparing annual versus monthly funding, when a contract offers a waiting period before income starts, or when you want to see how much extra an annuity-due schedule earns versus end-of-period deposits. Changing frequency matters because a 6% annual rate becomes 0.5% per month, and deferral years are converted into matching compounding periods. The result is a planning balance, not a guaranteed insurance illustration. The calculation omits mortality credits, rider fees, surrender charges, and taxes. Credited rates can change, and a variable or indexed annuity will not compound at a constant i. Treat the output as a transparent compound-interest check against a statement or illustration, then apply product fees and tax rules separately before making a purchase or rollover decision. When you compare two quotes, hold payment amount and deferral years constant and change only rate, frequency, or ordinary versus due timing. A monthly ordinary annuity at the same nominal annual rate usually finishes ahead of annual deposits because interest is credited more often. Record the assumed rate next to the result; a 1-point rate error compounds across both the contribution phase and the deferral and can move the future value more than a change in a single payment. If a product illustration already nets mortality and expense charges, do not add this calculator’s gross compound interest on top of that illustration.