How to Calculate a Deferred Annuity

Deferred annuities are investment vehicles sold by insurance companies providing investors with tax-deferred growth on the earnings. A deferred annuity may offer fixed rates of return or variable rates contingent on mutual fund growth within the annuity. You can calculate the value of a deferred annuity in two ways: present value or future value. These values help you determine what you need to invest to meet your investment goals.