This calculator separates an account-growth illustration, a finite mathematical payout and an entered contract quote. The selected mode determines what the numbers mean; the tool does not supply insurer pricing, a mortality forecast or a contract-specific tax result.
A finite schedule is not a lifetime price
A finite annuity converts a premium into a stated number of payments under an entered rate assumption. The calculator discounts each payment at an equal periodic rate and solves for the first payment. COLA increases that payment after each completed payment year, rather than changing every monthly payment independently. The selected term is rounded to one whole payment count, and the receipt shows the requested term and modeled count. No payment continues after that finite schedule ends.
An insurer quote is a different input. Enter the payment that was actually quoted, select its payment frequency and identify whether its contract description is fixed-term or lifetime. The tool does not infer a payment from age, a generic life table or a crediting rate. For a lifetime description, the main result is a projection through the selected horizon. The income planner may continue the entered payment assumption through its scenario end age. Neither endpoint establishes how long a person will live or what the insurer guarantees. Compare actual contract terms separately, including survivor options, liquidity, surrender values and the insurer obligation.
Read tax and fee assumptions before comparing
In the default nominal-rate haircut convention, the accumulation fee field subtracts annual percentage points from the nominal crediting rate before the selected compounding conversion. For example, a zero gross rate and a one-point haircut produce negative net growth. The model keeps that erosion; it does not floor the return at zero or award a tax credit for a loss. This convention is an assumption for a mathematical comparison, not a measurement of the administrative, rider, investment or surrender charges on a particular contract.
The accumulation after-tax value applies the entered flat tax once at the horizon: to the whole balance under the fully pre-tax assumption, or only to positive gains under model basis allocation. The payout model instead shows each period’s gross amount, modeled premium basis returned, taxable amount, tax and net payment. Basis returned cannot exceed the premium. Fully pre-tax mode assumes there is no after-tax basis; do not apply that assumption to a plan that has one. An entered taxable share is another explicit illustration, not a substitute for the applicable contract tax method. IRS Publication 575 explains why plan type, investment in the contract and the payment arrangement affect the actual result. The calculator does not choose a legal method for you.
Use the ledger to connect income and expenses
The income planner uses the original payout start age and payment schedule. If retirement begins after a finite term has already ended, it does not restart that payout. COLA and the selected payment frequency determine the actual payments in each annual window. Enter Social Security and other income on a net basis comparable with the modeled after-tax annuity payments. Expenses start from the entered current amount and increase by the entered annual inflation assumption. The chart, annual table and CSV show the same income, expenses and unfunded amount.
The accumulation planner provides a separate finite annuitization illustration at retirement using the modeled maturity value. It does not create an insurer benefit-base quote, and it assumes no additional growth if retirement starts after the accumulation period. A scenario end age at or before retirement does not produce a fabricated extra payout year. Use the dated CSV to inspect every regular payment and retain the model receipt with a comparison. Monetary calculations remain unrounded internally; display amounts are rounded. Default links omit financial inputs, while an input-bearing Share link requires an explicit preview and choice. No identity or document upload is needed.
Trace an assumed charge through the account
The optional account-charge convention creates an explicit sequence of modeled balance deductions. Enter an effective annual fraction, not a nominal-rate reduction. Each month the account first receives the gross growth implied by the selected annual, quarterly or monthly compounding frequency. The equivalent monthly charge is deducted next, and the monthly contribution arrives at the end. A contribution is therefore first exposed to the following month’s growth and charge. For USD 1,000, zero gross growth, no contributions and a 1% annual effective charge, twelve months leave USD 990 and total modeled deductions of USD 10.
The ledger retains unrounded cash flows. Its displayed components are rounded separately, with a visible rounding reconciliation that is not a debit or deposit. CSV preserves the original balance columns and appends raw charge fields and displayed components. Horizon tax is applied once under the selected assumption. The planner converts the same selected return to a monthly equivalent and uses the pre-liquidation balance for its separate withdrawal illustration. These user assumptions do not establish an insurer’s actual rider, surrender, investment or administrative charges; compare the contract and provider statement separately.