Annuity Calculator
Build the future value of an annuity with monthly payments, interest and payment timing. Plan guaranteed income.
Annuity value
₹23,00,387
Payments at the end of each month
Total invested
₹12,00,000
Interest earned
₹11,00,387
Growth
192%
Over 120 months
Assumes monthly compounding at a fixed rate. Annuity products in India (LIC and others) often guarantee only part of the return — the rest depends on how the insurer invests. Returns are not guaranteed.
Annuity Calculator on True Calculator gives you an instant, accurate answer with no sign-up and no app install. Build the future value of an annuity with monthly payments, interest and payment timing. Plan guaranteed income. Every result shows the formula and a worked example so you can verify the calculation yourself, and all values are computed in your own browser — your numbers never leave your device.
Popular uses: annuity calculator · annuity future value calculator · annuity growth calculator
How We Calculate
This calculator uses standard financial formulas verified by our team. All calculations are performed instantly in your browser using JavaScript — no data is sent to any server.
We use RBI-approved formulas and regularly updated bank rates. All rates and standards are sourced from official government and regulatory websites.
When to Use This Calculator
Use this calculator when evaluating annuity and pension-style products — the accumulation phase of the plan — or when you simply want to see what regular monthly savings grow into at a fixed assumed rate. It is frequently used by retirees planning a corpus: the projected value becomes the starting input for the annuity payout calculator, which converts it into monthly income. Because it isolates the mathematics, it lets you compare products on identical assumptions instead of relying on glossy illustrations with different rates. For India-based investors it also serves as a conservative growth model against which market-linked alternatives can be judged — if a fund's projected SIP result is barely above this fixed-rate projection, the extra risk may not be worth it. The result is pre-tax, so adjust for slab-rate taxation on the interest portion.
How to Use This Calculator
- Step 1: Choose whether payments are made at the end (ordinary) or start (due) of each month.
- Step 2: Enter the monthly amount you plan to pay into the annuity.
- Step 3: Set the expected annual return — be conservative, since Indian annuity products rarely guarantee high rates.
- Step 4: Enter the accumulation period in years and read the annuity value, invested amount, and interest earned.
Worked Example
Suresh pays ₹10,000 per month into a deferred annuity earning 12% per year for 10 years. With end-of-month payments the corpus reaches about ₹23,00,387, against ₹12,00,000 he put in — ₹11,00,387 of interest. If his payments were made at the start of each month, the same inputs give roughly ₹23,23,391, about ₹23,000 more, because every payment earns one extra month of interest. Small timing and rate differences visibly change the final corpus.
Tips and Common Mistakes
- •Compare at least two insurers' annuity rates before committing — guaranteed rates vary and matter over decades.
- •Use a rate below the marketed figure to stress-test whether the target corpus still works.
- •Start young: 10 years of ₹10,000 monthly beats 5 years of ₹20,000 monthly because compounding needs time.
- ✗Avoid buying annuity plans with charges you have not compared — high charges silently shrink the compounding base.
- ✗Avoid locking the whole retirement fund into one annuity; keep part liquid for emergencies and inflation.
Frequently Asked Questions
What is an annuity in this calculator?
An annuity is a series of equal payments made at regular intervals. Here you build up the future value of monthly payments that earn interest until a target date — the same math used to estimate the corpus a pension-style product can accumulate.
What is the difference between ordinary annuity and annuity due?
An ordinary annuity pays at the end of each period; an annuity due pays at the start. Because due payments earn one extra month of interest each period, the due value is slightly higher — for ₹10,000/month at 12% over 10 years, ₹23.24 lakh vs ₹23.00 lakh.
Do Indian annuity products earn a fixed return?
Most Indian deferred annuity plans from insurers guarantee only a modest rate; the rest of the return depends on the insurer's investments. Use the calculator with a conservative rate, and treat the result as a planning estimate rather than a promise.
How is annuity income taxed in India?
The interest portion of annuity payouts is taxed at your income slab rate. For deferred annuities, the maturity amount can also have tax implications depending on the policy type. A tax advisor can map the specific product to your situation.
How is this different from a SIP?
A SIP invests in market-linked mutual funds with no guaranteed return; this calculator compounds at a fixed rate you choose. The accumulation math is similar, which is why the two calculators often show close figures — but the risk profiles differ completely.
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