Estimate your potential annuity payouts based on your investment and chosen contract type.
Annually
Semi-Annually
Quarterly
Monthly
Projected Outcome
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Understanding Annuities and Projections
Annuities are financial contracts between you and an insurance company, designed to provide a stream of income, often for retirement. You make a lump-sum payment or a series of payments, and in return, the insurer promises to make periodic payments to you, starting immediately or at a future date.
This calculator provides a simplified projection of potential outcomes based on an initial investment, an assumed annual growth rate during the accumulation phase, and the details of the payout phase. It is crucial to understand that this is a projection, not a guarantee. Actual returns can vary significantly.
How the Projection Works:
Accumulation Phase: The calculator first estimates the future value of your initial investment based on the assumed annual growth rate over the specified term. The formula used is:
Future Value = Initial Investment * (1 + (Annual Growth Rate / 100))^Annuity Term (Years)
Payout Phase Projection: Based on the accumulated value, the calculator then estimates potential periodic payouts. For simplicity in this projection, we are not modeling complex annuity payout options (like fixed periods, life contingencies, or inflation adjustments), but rather providing a general idea of how the invested sum might translate into income. The projected periodic payout is derived from the accumulated value, factored by the growth rate and payout frequency.
Projected Periodic Payout = (Accumulated Value * (Annual Growth Rate / 100)) / Payout Frequency per Year
Key Inputs Explained:
Initial Investment Amount: The total sum you plan to invest in the annuity.
Assumed Annual Growth Rate (%): The average annual rate of return you anticipate your investment will earn. This is a hypothetical figure and can fluctuate.
Annuity Term (Years): The number of years you plan to keep the investment before or during the payout phase.
Payout Frequency: How often you would receive payments (annually, semi-annually, quarterly, or monthly).
Important Considerations:
This calculator is a tool for estimation only. It does not account for all annuity features, fees, taxes, surrender charges, or specific contract limitations.
The assumed annual growth rate is a critical variable. Higher assumed rates lead to higher projected outcomes but may be less realistic.
Annuities come in various types (fixed, variable, indexed) with different risk and return profiles. Consult with a qualified financial advisor to understand which type best suits your financial goals and risk tolerance.
Fidelity offers a range of annuity products. For precise calculations and product-specific details, please refer to official Fidelity documentation or speak with a Fidelity representative.
function calculateAnnuityProjection() {
var initialInvestment = parseFloat(document.getElementById("initialInvestment").value);
var annualGrowthRate = parseFloat(document.getElementById("annualGrowthRate").value);
var annuityTermYears = parseInt(document.getElementById("annuityTermYears").value);
var payoutFrequency = parseInt(document.getElementById("payoutFrequency").value);
var resultElement = document.getElementById("result");
var resultUnitElement = document.getElementById("resultUnit");
// Basic validation
if (isNaN(initialInvestment) || initialInvestment < 0 ||
isNaN(annualGrowthRate) || annualGrowthRate < 0 ||
isNaN(annuityTermYears) || annuityTermYears <= 0 ||
isNaN(payoutFrequency) || payoutFrequency <= 0) {
resultElement.textContent = "Invalid Input";
resultUnitElement.textContent = "";
return;
}
// — Calculation Logic —
// 1. Calculate Accumulated Value at the end of the term
var accumulatedValue = initialInvestment * Math.pow(1 + (annualGrowthRate / 100), annuityTermYears);
// 2. Calculate potential annual payout based on accumulated value and growth rate
// This is a simplified model assuming payout is based on the growth of the accumulated capital.
// More complex models would consider annuitization factors, mortality, etc.
var potentialAnnualPayout = accumulatedValue * (annualGrowthRate / 100);
// 3. Calculate the projected periodic payout
var projectedPeriodicPayout = potentialAnnualPayout / payoutFrequency;
// — Display Results —
var formattedPayout = projectedPeriodicPayout.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 });
resultElement.textContent = "$" + formattedPayout;
var frequencyText = "";
if (payoutFrequency === 1) frequencyText = "per Year";
else if (payoutFrequency === 2) frequencyText = "every 6 Months";
else if (payoutFrequency === 4) frequencyText = "per Quarter";
else if (payoutFrequency === 12) frequencyText = "per Month";
resultUnitElement.textContent = "Projected Payout " + frequencyText + " (Based on simplified model)";
}