How Do You Use an Annuity Fund Calculator?

How Do You Use an Annuity Fund Calculator?

To use an annuity fund calculator, go to a financial website and enter the information required to perform the calculations. Annuity funds are investments that can create a stream of income, increase a person's retirement savings or protect a person's savings, states Fidelity Investments. Annuity fund calculators can be found on investment sites, such as Fidelity and Bank Rate.

An annuity fund provides people with monthly payments starting at retirement and continuing until their death, rather than one lump sum, notes TIAA-CREF Financial Services. The steps below show how to use an annuity fund calculator, such as the one offered by Bank Rate.

  1. Go to the financial website
  2. Go to the Bank Rate website. Click on "Calculators" in the upper portion of the screen, and then click on "Retirement." Choose "Annuity calculator."

  3. Enter the interval
  4. Choose the desired initial payment interval between withdrawals. As of 2015, there are four options: monthly, quarterly, semi-annually and yearly.

  5. Complete the rest of the form
  6. Complete three of the four remaining questions, depending on the information being calculated. The calculator will calculate the amount needed to produce a specific payment amount, the payment amount that will deplete the annuity in a specific number of years or the number of years that the fund will generate payments.

  7. Calculate the information
  8. Click on "Calculate" to generate the desired result.