Use this free fixed annuity calculator to see exactly how much a multi-year guaranteed annuity (MYGA) will grow — and how it stacks up against a bank CD. Enter your deposit, the guaranteed rate, and the number of years. The results update instantly.
See how much a fixed annuity (MYGA) grows at a guaranteed rate — and how it compares to a bank CD.
Compare to a bank CD
Value at the end of 5 years
—
Interest you earn
—
More than the CD (before tax)
—
Account value, year by year
Year-by-year table
| Year | Interest that year | Annuity value | CD value |
|---|
Want the actual best rate for your amount and term? I’ll quote every California carrier for you — no cost, no pressure.
Get My Free QuoteFor education only — not a quote, offer, or illustration of any specific annuity. Assumes interest compounds once a year, no withdrawals, and no fees. Fixed annuity growth is tax-deferred; CD interest is usually taxed each year; the after-tax comparison uses the tax rate you enter and assumes you cash out at the end. Rates and guarantees depend on the issuing insurance company’s claims-paying ability. Kevin Edwards, Integrity Now Insurance Brokers, CA License #0D42517.
How to use the fixed annuity calculator
- Enter how much you’d put in. This is your one-time deposit, called the premium. Most fixed annuities start at $5,000 to $25,000.
- Enter the guaranteed rate. This is the yearly interest rate the insurance company promises for the whole term. If you don’t know what rates look like today, check our weekly California fixed annuity rates page.
- Pick the number of years. This is the guarantee period — usually 3, 5, 7, or 10 years.
- (Optional) Compare to a CD. Open “Compare to a bank CD,” enter the rate your bank offers and your tax rate. You’ll see the difference before and after taxes.
The calculator shows what your account will be worth at the end, how much of that is your deposit versus interest, and a year-by-year breakdown you can open below the chart.
How a fixed annuity grows
A fixed annuity — most often a multi-year guaranteed annuity (MYGA) — works a lot like a CD from an insurance company. You deposit a lump sum, the insurer guarantees an interest rate for a set number of years, and your interest compounds on top of itself each year.
The math is simple: ending value = deposit × (1 + rate) ^ years. For example, $100,000 at a guaranteed 5.75% for 5 years grows to about $132,252. Because the rate is locked in on day one, that number doesn’t change if the stock market drops or interest rates fall.
Tax-deferred growth
Unlike a CD, interest inside a fixed annuity isn’t taxed each year. You pay income tax only when you withdraw it, so your full interest keeps compounding. The calculator’s after-tax comparison shows what that’s worth: the CD loses part of its interest to taxes every year, while the annuity is taxed once, when you cash out. If you withdraw gradually in retirement, when your tax rate may be lower, the advantage can be larger.
Fixed annuity vs. CD: what the numbers don’t show
| Fixed annuity (MYGA) | Bank CD | |
|---|---|---|
| Rate | Guaranteed for the full term | Guaranteed for the full term |
| Taxes on interest | Deferred until you withdraw | Taxed every year |
| Early access | Most allow about 10% a year free; more triggers a surrender charge | Early-withdrawal penalty (often several months of interest) |
| Protection | Backed by the insurer; California’s guaranty association covers 80% of the present value up to $250,000 | FDIC-insured up to $250,000 |
| Withdrawals before 59½ | 10% IRS penalty on earnings, plus income tax | No age penalty |
For many savers who won’t need the money for the full term, a fixed annuity’s higher rate and tax deferral add up to a meaningfully larger balance. If you might need the money soon, a CD’s simpler access may be worth the lower rate.
What affects your fixed annuity rate
- Term length. Longer guarantee periods usually pay more.
- Deposit size. Some products pay a higher rate on larger deposits (often $100,000 or more).
- The insurance company. Rates for the same term can differ significantly from one carrier to the next.
- Where you live. Not every annuity is approved in every state. Our rates pages list only products California residents can buy.
Fixed annuity calculator FAQs
Is the result guaranteed?
The math is exact for the rate you enter. If you buy a fixed annuity with that guaranteed rate and don’t withdraw early, your contract value at the end of the term will match. The guarantee depends on the claims-paying ability of the insurance company, which is why carrier financial strength matters.
Is a MYGA the same as a fixed annuity?
A MYGA is the most common type of fixed annuity. “Fixed annuity” can also mean a contract whose rate is guaranteed only for the first year and then resets. This calculator assumes the rate stays the same for the whole term, which is how a MYGA works. Learn more on our fixed annuity guide.
What happens when the term ends?
You typically get a 30-day window to take the money, roll it into a new annuity, or let it renew at the insurer’s current rate. Renewal rates are often lower, so it pays to shop again.
Can I take money out early?
Most fixed annuities let you withdraw up to 10% a year without a surrender charge. Taking more than that during the term usually costs a surrender charge, and some contracts also apply a market value adjustment.
Can I add money to a fixed annuity later?
Usually not. Most MYGAs are single-premium contracts: you make one deposit at the start. That’s why this calculator doesn’t include monthly or yearly additions. A few flexible-premium annuities accept ongoing deposits, but they typically guarantee their rate for a shorter time. If you’ll have more money to invest later, you can buy a second annuity at that time’s rate.
Do I pay taxes on the interest?
Not until you withdraw it. Withdrawals of earnings are taxed as ordinary income, and taking earnings before age 59½ can add a 10% IRS penalty. If the annuity is inside an IRA, IRA rules apply instead.
Get today’s best fixed annuity rate
The calculator shows what’s possible — a quote shows what’s available. I’m Kevin Edwards, an independent California-licensed annuity agent, and I compare fixed annuities from dozens of carriers so you can lock in the best guaranteed rate for your amount and term. Request a free fixed annuity quote or call (877) 854-7396.
More tools: fixed index annuity calculator · immediate annuity calculator · all annuity calculators