# Annuities Calculator – Make Smart Decisions

In the simplest sense, annuities are those investment products that offer scheduled payments in exchange for an initial lump sum. When we reach a certain age, we want to make sure that we can secure our life and finances. We consider getting investments. Annuities are very promising since they pay an amount based on the contract that you have considered. They come in all forms. The big question is calculating the gains that you can generate from these annuities. An annuities calculator is a unique tool that you can use to determine, in theory, how much you would need or how much you can gain from annuities. There are numerous variables that are essential to effectively use the annuities calculator.

Let us look first at the factors that are important for the annuities calculator. First is your starting principal. This is essential so that the annuities calculator can determine the amount of payments that can be made in a set amount of time or the number of years in which the payment will deplete your fund. Another factor is the payment. This is the amount that you withdraw from the account. The annuities calculator will use this to calculate the amount of money that you should put as annuity to gain that amount of money.

The annuities calculator can be used to calculate the payment that could deplete your fund in a set amount of years. Withdrawing an amount from your annuity is ideal only if you have gained considerable money in the process. You want to make sure that you keep the principal solid so that it will keep on generating income as you move on. If you wish to receive supplemental income from annuities, then you can use the annuities calculator to calculate how much you can get within the set period of time and withdrawal frequency that you set. An annuity of $5000 with a withdrawal amount of $1000 a year will only last around 5 years or so.

If you have money but you do not know how much you need to put into the annuity, then you can also use the annuities calculator to determine how much principal you need to withdraw a certain amount of money at a fixed period of time. For example, you want to withdraw $7000 a year within the next 10 years. Based on the annuities calculator, you need a fairly steep principal around $67,000 in order to make such a withdrawal.

If you have a saved a considerable amount of money and you wish to withdraw a certain amount annually, you might be interested to know how long it would take for the money to be depleted, the annuities calculator can also offer answers for that query. You type in your principal and withdrawal amount as well as interest rate and you can identify how long your money can suffice you. If you need the annuity to pay for the mortgage, you want to make sure that it will be able to last till you pay your mortgage.

Find out more about annuities beyond what annuities calculator can offer. Choose your states and get the best rates from top insurance companies in your area.