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Deferred Annuity Calculator

Work out deferred annuity instantly with clear inputs, formula shown and shareable results.

About Deferred Annuity Calculator

A deferred annuity starts paying after a waiting period. Value it in two steps: the annuity value at the first payment date, then discount that back over the deferral — which is why deferring reduces the price sharply.

Formula

Deferred annuity

PV = P(1-(1+r)^-m)/r × (1+r)^-d

d
Deferral years
m
Payout years

Worked example

With the default values below, Deferred Annuity Calculator returns Value Today of $1,091,448.47. Change any input above and every figure here is recalculated in your browser.

Inputs used

Annual Paymentminimum 0
240,000
Discount Rateaccepts 0–100 %
8 %
Years Before Payments Startaccepts 1–40
10
Years Of Paymentsaccepts 1–50
20

Results

Value Today
$1,091,448.47
Value When Payments Begin
$2,356,355.38
Total Payments Received
$4,800,000.00
Growth During The Deferral Period
$1,264,906.91

Step by step

  1. 1Values used
  2. 2Deferred annuity
  3. 3Value Today= 1,091,448.47
  4. 4Value When Payments Begin= 2,356,355.38
  5. 5Total Payments Received= 4,800,000.00
  6. 6Growth During The Deferral Period= 1,264,906.91

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or fees or charges into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.

Frequently Asked Questions

Why are deferred annuities cheaper?

The insurer holds your money and earns on it before paying anything, and some buyers do not survive to the start date.

What is the main risk?

Inflation over a long deferral, unless the payments are index-linked.

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Deferred Annuity Calculator – Calculate Value Today