Indexed Rate Annuity Calculator

Many indexed annuities credit interest annually based upon the performance of an index, limited to an annual cap rate.

  • In a year that the index rises more than the cap rate, the interest credit is the cap rate.
  • In a year that the index rises less than the cap rate, the entire increase is credited.
  • In a year that the index declines, the annuity's value is protected from the decline, and there is there no interest credit.

To show how this works, this calculator provides an example using the actual changes in the S&P 500 during the calendar years 2006 - 2016.

The calculation is based on the premium and cap rate you enter. This calculator does not reflect any particular indexed annuity product, thus it does not reflect or guarantee future performance of any product. Keep in mind that on most indexed annuities, the carrier can change the cap rate from year to year.

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Year Index * Change Crediting Rate Interest Ending Amt