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Annuity Calculator | Canada
Annuity Calculator is designed to help you model long-term growth, compare return assumptions, and plan future contributions. It works best when you want a fast, comparable estimate before you speak to a lender, provider, adviser, employer, or supplier. Use it as a planning tool rather than a final quote. This version is framed for Canada users where regional assumptions matter, so you can test a few scenarios and see how changes in the main inputs affect the outcome.
Interpretation
What your result means
Use the notes below to understand the main figures in your result and when this calculator is most useful.
When to use this calculator
- Before choosing between saving, investing, or increasing your monthly contribution.
- When you want to compare best-case, base-case, and cautious return assumptions.
- When you need a quick projection before making a longer-term portfolio decision.
Result
Use this metric to compare scenarios side by side and understand how the key drivers affect the final outcome.
Next steps
What to do next
Continue with the most relevant next step based on your result.
Example
A realistic Canada planning example
A realistic example to help you understand how the numbers fit together.
Regular Payment (£)
500
Annual Interest Rate (%)
5%
Years
10 years
Type (0=Ordinary, 1=Due)
0
After entering these figures, focus on result first and then rerun the tool with a more cautious assumption.
Avoid mistakes
Common mistakes
A few things that often lead to misleading or incomplete results.
FAQ
Frequently asked questions
Helpful answers to common questions about this calculator.
What is an annuity?
An annuity is a series of equal payments made at regular intervals over a set period. In the UK, pension annuities provide a guaranteed income in retirement in exchange for a lump sum.
What is the difference between an ordinary annuity and an annuity due?
An ordinary annuity makes payments at the end of each period, while an annuity due makes payments at the beginning. An annuity due is worth slightly more because payments are received earlier.
How are UK pension annuity rates determined?
UK pension annuity rates are influenced by gilt yields, your age, health, and the type of annuity chosen. Shopping around using the open market option typically secures a better rate.
Can I calculate how much I need to save for a target annuity income?
Yes, by entering your desired regular payment amount and expected interest rate, you can work backwards to find the lump sum needed to generate that income stream.
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