Finance

Deferred Annuity Calculator

Calculate the present and future value of an annuity with a deferral period.

Lump Sum Investment ($)

Interest Rate (%/yr)

Deferral Period (years)

Years before payments begin

Payout Period (years)

Formula:
Accumulated Value = Lump Sum × (1 + r)^deferral
Annual Payment = AV × [r / (1 − (1+r)^−payout)]
Total Payments = Annual Payment × Payout Years

How Deferred Annuities Work

A deferred annuity has two phases: an accumulation phase where your money grows tax-deferred, and a payout phase where you receive regular income. The longer the deferral, the larger each payment will be.