Use the calculator below to project the future value of a fixed annuity or MYGA. Enter your investment amount, the guaranteed annual rate, and the contract term. Results include a year-by-year growth schedule and a tax-aware comparison to a CD at the same rate.
Fixed Annuity / MYGA Growth Calculator
See exactly what your fixed annuity will be worth at maturity, plus a year-by-year growth schedule and a tax-aware comparison vs a CD at the same rate.
At End of Term
| Total interest earned | |
| Effective annual yield (APY) | |
| If withdrawn at maturity (after tax) | |
| Equivalent CD ending value (interest taxed yearly) | |
| MYGA tax-deferral advantage |
Year-by-Year Growth
The CD comparison assumes interest earned in a CD is taxed each year at your marginal rate, while MYGA interest compounds tax-deferred until withdrawal. Actual MYGA rates change daily - see today's top MYGA rates across 50+ A-rated carriers.
How a Fixed Annuity Grows
A fixed annuity (also called a Multi-Year Guaranteed Annuity, or MYGA) is a contract with an insurance company that pays a guaranteed interest rate for a set term, typically 3 to 10 years. Interest compounds tax-deferred inside the contract. You owe no taxes on the growth until you withdraw it. That single feature is what makes a MYGA compound faster than a CD at the same headline rate.
MYGA vs CD: Why the Math Wins
A 5-year CD paying 5.50% sounds identical to a 5-year MYGA paying 5.50%. But interest in a CD is taxed every year, even if you don’t withdraw it. Interest in a MYGA stays in the contract and compounds. Over 5 years at a 22% marginal tax rate, $100,000 grows to about $130,696 in a MYGA versus about $123,099 in a CD. The MYGA advantage: roughly $7,600 of additional after-tax wealth on a $100,000 investment.
What Compounding Frequency Actually Does
Most MYGAs credit interest annually. Some credit semi-annually or monthly. The difference at a 5.50% rate is small – about $200 over 5 years on a $100,000 contract between annual and monthly compounding. The bigger driver of total return is the rate itself and the tax treatment, not the compounding frequency.
Surrender Charges and Free Withdrawals
The calculator assumes you hold the contract to the end of the surrender period. Withdraw early and you face surrender charges – typically 6-9% in year 1, declining to 0% by the end of the term. Most MYGAs allow you to take out 5-10% per year penalty-free, and many waive surrender charges entirely for nursing home confinement or terminal illness. Read more about surrender charges.
Frequently Asked Questions
Is a MYGA safer than a CD?
Both are very safe but backed differently. CDs are FDIC-insured up to $250,000 per depositor per bank. MYGAs are backed by the issuing insurance company, with state guaranty associations providing a backstop (typically $250,000-$300,000 per contract). For amounts above the FDIC limit, MYGAs from highly-rated carriers are competitive on safety and usually beat CDs on rate.
What happens at the end of the surrender period?
You typically have a 30-day window to make a decision. Options: (1) take a lump sum, (2) renew at the carrier’s then-current rate, (3) execute a 1035 exchange to a new MYGA at a different carrier, or (4) annuitize for a guaranteed income stream. Many people roll into a new MYGA at the highest available rate.
How is MYGA interest taxed?
Inside the contract, interest is tax-deferred – no tax until withdrawal. When you withdraw, the interest portion is taxed as ordinary income (not as long-term capital gains). If you bought the MYGA with non-qualified (after-tax) money, your original premium returns to you tax-free. If you bought with IRA or 401(k) money, the entire withdrawal is taxable.
What rate should I expect today?
As of 2026, top MYGA rates run roughly 5.0-5.7% for 3-year, 5.4-6.3% for 5-year, and 5.5-6.3% for 7-year terms – varying by carrier rating and contract size. See today’s top MYGA rates updated daily.
Can I withdraw interest annually?
Most MYGAs offer two interest crediting modes: full tax deferral (interest stays in the contract) or systematic withdrawal of interest (you take the interest as monthly or annual income while the principal stays untouched). The latter mode forfeits some of the tax-deferral advantage but provides current income.
