{"id":223,"date":"2025-05-09T15:43:14","date_gmt":"2025-05-09T12:43:14","guid":{"rendered":"http:\/\/wpcalc.com\/?p=223"},"modified":"2026-10-20T13:08:49","modified_gmt":"2026-10-20T10:08:49","slug":"deferred-annuity-payment","status":"publish","type":"post","link":"https:\/\/wpcalc.com\/en\/finance\/deferred-annuity-payment\/","title":{"rendered":"Deferred Annuity Payment Calculator"},"content":{"rendered":"<section class=\"not-prose calculator-box\" aria-labelledby=\"calculator-title\"><div class=\"flex items-baseline sm:items-center justify-between gap-2 sm:gap-3\"><div class=\"flex flex-col sm:flex-row sm:items-center gap-2\"><span class=\"icon icon-calculator text-primary-700! text-base! dark:text-primary-300!\" aria-hidden=\"true\"><\/span><h2 id=\"calculator-title\" class=\"text-lg font-display font-bold\">Calculate Deferred Annuity Payments with Interest<\/h2><\/div><div class=\"calcdash-favorite group\">\n  <button type=\"button\" class=\"favorite\" id=\"favorite\" data-favorite-id=\"223\" data-favorite-title=\"Deferred Annuity Payment\" data-favorite-url=\"https:\/\/wpcalc.com\/en\/finance\/deferred-annuity-payment\/\" data-favorite-excerpt=\"Calculates the fixed periodic payment of a deferred annuity. Enter the present value, annual interest rate, number of payments and the length of the deferral period in years to see the payment once payouts begin.\" aria-label=\"Add to Favorites\" data-favorite-icon=\"icon icon-rate-up\">\n    <span class=\"icon icon-shape-star-empty\" aria-hidden=\"true\"><\/span>\n  <\/button>\n  <div class=\"calcdash-favorite__tip\" aria-hidden=\"true\">\n   <span class=\"favorite-tooltip\" id=\"favorite-tooltip\"><\/span>\n  <\/div>\n  <span class=\"sr-only\" role=\"status\" id=\"favorite-status\"><\/span>\n<\/div><\/div><form action=\"https:\/\/wpcalc.com\/en\/finance\/deferred-annuity-payment\/\" method=\"POST\" class=\"calculator\" id=\"calculator-223\" data-post=\"223\"><fieldset class=\"fieldset-input\"><legend class=\"sr-only\">Input Fields<\/legend><div class=\"field has-term\" id=\"input-1\"><label for=\"field-1\">Present Value of Annuity<\/label><div class=\"term\">P<\/div>  <div class=\"absolute bottom-0 left-16 top-8 w-2 h-0.5 bg-blue-500\"><\/div><input type=\"text\" name=\"present_value_of_annuity\" id=\"field-1\" aria-describedby=\"calc-unit-1 calc-info-1\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0\" value=\"10000\"\/><div class=\"unit\" id=\"calc-unit-1\">$<\/div><small id=\"calc-info-1\">Present value of the deferred annuity<\/small><\/div><div class=\"field has-term\" id=\"input-2\"><label for=\"field-2\">Annual Interest Rate<\/label><div class=\"term\">r<\/div>  <div class=\"absolute bottom-0 left-16 top-8 w-2 h-0.5 bg-blue-500\"><\/div><input type=\"text\" name=\"annual_interest_rate\" id=\"field-2\" aria-describedby=\"calc-unit-2 calc-info-2\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0\" value=\"6\"\/><div class=\"unit\" id=\"calc-unit-2\">%<\/div><small id=\"calc-info-2\">Annual interest rate used for discounting<\/small><\/div><div class=\"field has-term\" id=\"input-3\"><label for=\"field-3\">Number of Payments<\/label><div class=\"term\">n<\/div>  <div class=\"absolute bottom-0 left-16 top-8 w-2 h-0.5 bg-blue-500\"><\/div><input type=\"text\" name=\"number_of_payments\" id=\"field-3\" aria-describedby=\"calc-info-3\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"1\" value=\"10\"\/><small id=\"calc-info-3\">Total number of annuity payments<\/small><\/div><div class=\"field has-term\" id=\"input-4\"><label for=\"field-4\">Deferral Period (Years)<\/label><div class=\"term\">d<\/div>  <div class=\"absolute bottom-0 left-16 top-8 w-2 h-0.5 bg-blue-500\"><\/div><input type=\"text\" name=\"deferral_period_years\" id=\"field-4\" aria-describedby=\"calc-info-4\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0\" value=\"5\"\/><small id=\"calc-info-4\">How many years until the annuity payments begin<\/small><\/div><\/fieldset><div class=\"buttons\"><button type=\"submit\" data-text=\"Re-Calculate\" id=\"calculate-button\" data-post=\"223\">Calculate<\/button><button type=\"reset\">Reset<\/button><\/div><div class=\"field is-checkbox hidden!\" id=\"field-auto-calc\"><input type=\"checkbox\" id=\"auto-calc\"><label for=\"auto-calc\">Calculate automatically<\/label><small>If enabled, the result will update automatically when you change any value.<\/small><\/div><div class=\"fieldset-result is-hidden\" aria-labelledby=\"result-title\" aria-live=\"polite\" role=\"region\"> <h3 class=\"result-title bg-gradient-to-r from-primary-50 to-gray-50 dark:from-primary-900 dark:to-gray-800\" id=\"result-title\"><span class=\"icon icon-s-pulse\" aria-hidden=\"true\"><\/span> Your Results<\/h3><div class=\"result-box\"><div class=\"field-result\" id=\"output-1\"><span class=\"field-title\"><span>Deferred Annuity Payment<\/span><\/span><span class=\"field-value\" id=\"result-1\" data-unit=\"$\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><\/div><div class=\"result-actions\"><button type=\"button\" class=\"copy-link\"><svg viewBox=\"0 0 20 20\" fill=\"currentColor\" aria-hidden=\"true\"><path d=\"M12.232 4.232a2.5 2.5 0 0 1 3.536 3.536l-1.225 1.224a.75.75 0 0 0 1.061 1.06l1.224-1.224a4 4 0 0 0-5.656-5.656l-3 3a4 4 0 0 0 .225 5.865.75.75 0 0 0 .977-1.138 2.5 2.5 0 0 1-.142-3.667l3-3Z\"\/><path d=\"M11.603 7.963a.75.75 0 0 0-.977 1.138 2.5 2.5 0 0 1 .142 3.667l-3 3a2.5 2.5 0 0 1-3.536-3.536l1.225-1.224a.75.75 0 0 0-1.061-1.06l-1.224 1.224a4 4 0 1 0 5.656 5.656l3-3a4 4 0 0 0-.225-5.865Z\"\/><\/svg><span class=\"copy-link__text\">Copy link to this calculation<\/span><\/button><span class=\"sr-only\" role=\"status\" id=\"copy-link-status\"><\/span><\/div><\/div><a href=\"#respond\" class=\"hidden transition-opacity duration-300 opacity-0 w-50 text-sm justify-center items-center gap-2 px-4 py-2 rounded bg-gray-200 text-gray-700 hover:bg-gray-300\" id=\"leave-comment\"><span class=\"icon icon-comments\" aria-hidden=\"true\"><\/span>Leave a Comment<\/a><\/form><\/section><section id=\"calc-reactions\" class=\"not-prose hidden my-12 bg-gradient-to-r from-primary-50 to-gray-50 border border-indigo-100 rounded-xl px-6 py-4 shadow-sm\" data-post=\"223\" aria-live=\"polite\" aria-labelledby=\"calc-reactions-title\"><p id=\"calc-reactions-title\" class=\"text-sm text-gray-500 text-center mb-2\">How did this result make you feel?<\/p><div role=\"group\" aria-labelledby=\"calc-reactions-title\" class=\"grid grid-cols-3 sm:flex sm:flex-row sm:justify-around gap-4 sm:items-center sm:flex-wrap\"><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"like\"><span class=\"reaction-count\" data-reaction-count=\"like\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\ud83d\ude00 <\/span><span class=\"reaction-description font-medium\">Like <\/span><\/button><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"helpful\"><span class=\"reaction-count\" data-reaction-count=\"helpful\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\ud83d\udca1 <\/span><span class=\"reaction-description font-medium\">Helpful <\/span><\/button><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"confused\"><span class=\"reaction-count\" data-reaction-count=\"confused\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\ud83d\ude15 <\/span><span class=\"reaction-description font-medium\">Confused <\/span><\/button><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"disappointed\"><span class=\"reaction-count\" data-reaction-count=\"disappointed\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\ud83d\ude1e <\/span><span class=\"reaction-description font-medium\">Disappointed <\/span><\/button><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"inaccurate\"><span class=\"reaction-count\" data-reaction-count=\"inaccurate\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\u274c <\/span><span class=\"reaction-description font-medium\">Inaccurate <\/span><\/button><\/div><div id=\"reaction-message\" class=\"hidden mt-8 rounded-md border border-primary-100 bg-white\/50 backdrop-blur-sm px-4 py-2 text-sm text-center shadow-sm\"><\/div><\/section><div class=\"calcdash-ad not-prose calcdash-ad--calc_result calcdash-ad--in-article\"><ins class=\"adsbygoogle\" style=\"display:block\" data-ad-client=\"ca-pub-1721569815777345\" data-ad-slot=\"6317458308\" data-ad-layout=\"in-article\" data-ad-format=\"fluid\"><\/ins><script>(adsbygoogle = window.adsbygoogle || []).push({});<\/script><\/div>\n<style id=\"wpcoderpro-inline-1\">.formula-box {\r\n\tborder-bottom: none !important;\r\n}<\/style><section class=\"formula-box\" aria-labelledby=\"formula-title\">\r\n\t<div id=\"formula-title\" class=\"not-prose font-display mb-4\"><span class=\"icon icon-formula\" aria-hidden=\"true\"><\/span><h2>Deferred Annuity Payment Formula<\/h2><\/div>\r\n\t<figure class=\"not-prose formula\">\r\n\t\t<figcaption class=\"formula-title\">Formula<\/figcaption>\r\n\t\t<div class=\"text-base text-gray-800\" id=\"formula\">\n\\[ PMT = \\frac{P}{\\left(1 - (1 + r)^{-n}\\right) \\times (1 + r)^{d}} \\]\n<\/div>\r\n\t<\/figure>\r\n\t<\/p>\n<p><strong>Where:<\/strong><\/p>\n<ul>\n<li>\\(PMT\\) \u2014 the fixed payment received in each period once payouts begin<\/li>\n<li>\\(P\\) \u2014 present value of the deferred annuity<\/li>\n<li>\\(r\\) \u2014 interest rate per period, expressed as a decimal (6% = 0.06)<\/li>\n<li>\\(n\\) \u2014 total number of payments<\/li>\n<li>\\(d\\) \u2014 number of deferred periods (years) before the first payment<\/li>\n<\/ul>\n<p>The factor \\(1 - (1 + r)^{-n}\\) is the annuity factor that spreads the present value across \\(n\\) equal payments, while \\((1 + r)^{d}\\) is the deferral factor that accounts for the \\(d\\) years of waiting before the payout phase begins.<\/p>\n<p>\r\n<\/section>\n<style id=\"wpcoderpro-inline-459\">.calculation-box {\r\n\tborder-bottom: none !important;\r\n}<\/style><section id=\"calculation\" class=\"calculation-box\" aria-labelledby=\"calculation-title\">\r\n\t<div id=\"calculation-title\" class=\"not-prose font-display\"><span class=\"icon icon-unordered-list\" aria-hidden=\"true\"><\/span><h2>Deferred Annuity Payment \u2013 Calculation Example<\/h2><\/div>\r\n\r\n<\/p>\n<p><strong>Example:<\/strong> a deferred annuity has a present value of $10,000, earns an annual interest rate of 6%, will make 10 annual payments, and the first payment begins after a deferral period of 5 years.<\/p>\n<p>\\[ PMT = \\frac{10{,}000}{\\left(1 - 1.06^{-10}\\right) \\times 1.06^{5}} \\]<\/p>\n<p>\\[ 1 - 1.06^{-10} = 1 - 0.5583948 = 0.4416052, \\qquad 1.06^{5} = 1.3382256 \\]<\/p>\n<p>\\[ PMT = \\frac{10{,}000}{0.4416052 \\times 1.3382256} = \\frac{10{,}000}{0.5909674} \\approx 16{,}921.41 \\]<\/p>\n<p><strong>Result:<\/strong> each deferred annuity payment is approximately <strong>$16,921.41<\/strong> per year.<\/p>\n<p>\n\r\n<\/section>\n<h2>How to Use the Deferred Annuity Payment Calculator<\/h2>\n<ol>\n<li>Enter the lump-sum value of the contract today in the <strong>Present Value of Annuity<\/strong> field ($).<\/li>\n<li>Type the annual rate used for discounting in the <strong>Annual Interest Rate<\/strong> field (%).<\/li>\n<li>Enter the total count of payouts in the <strong>Number of Payments<\/strong> field.<\/li>\n<li>Enter how many years pass before the first payment in the <strong>Deferral Period (Years)<\/strong> field. Use 0 if payments start immediately.<\/li>\n<li>Read the result: the <strong>Deferred Annuity Payment<\/strong> is the fixed amount paid in each period once the payout phase begins.<\/li>\n<\/ol>\n<h2>What Is a Deferred Annuity?<\/h2>\n<p>A deferred annuity is a financial contract in which payments do not start right away but begin after a waiting period, called the deferral period. It has two phases: an accumulation (deferral) phase, during which the money in the contract earns interest, and a payout phase, during which a fixed payment is made at regular intervals. Deferred annuities are widely used in retirement planning, where savings built up during working years are converted into income that starts at a chosen future date.<\/p>\n<p>Because of the time value of money, the timing of the payments matters as much as their size. Interest earned during the waiting period and the discounting of distant payments both shape what a given present value can support. This calculator captures both effects in one formula: the annuity factor \\(1 - (1 + r)^{-n}\\) links the value to the stream of \\(n\\) payments, and the deferral factor \\((1 + r)^{d}\\) adjusts the result for the years that pass before the first payment arrives.<\/p>\n<p>The result \\(PMT\\) is the amount paid in <em>each period<\/em> \u2014 with the default annual inputs, that is the payment per year. A larger present value or a smaller payment count raises the payment, while a longer deferral period or a higher interest rate lowers it, since both factors sit in the denominator of the formula. If payouts are scheduled to start immediately, simply set the deferral period to 0.<\/p>\n<h2>Assumptions, Limitations and Tips<\/h2>\n<ul>\n<li><strong>Annual payments and compounding.<\/strong> The calculator assumes one payment per year and an interest rate quoted per year. For monthly payouts, divide the rate by 12 and express both \\(n\\) and \\(d\\) in months, or use the <a href=\"https:\/\/wpcalc.com\/en\/finance\/annuity-monthly-payments\/\">monthly annuity payment calculator<\/a>.<\/li>\n<li><strong>Payments at period end.<\/strong> The model follows the ordinary-annuity convention: each payment occurs at the end of its period. Annuities that pay at the start of each period (annuity-due) produce slightly different figures.<\/li>\n<li><strong>Constant rate.<\/strong> The interest rate is assumed fixed for the whole deferral and payout horizon. Real annuities may use guaranteed rates during deferral and different rates during payout.<\/li>\n<li><strong>No fees, taxes or inflation.<\/strong> The result is a gross payment in nominal terms. Inflation erodes purchasing power over long horizons, especially during the deferral period \u2014 see the <a href=\"https:\/\/wpcalc.com\/en\/finance\/inflation-calculator-value-of-money-over-time\/\">inflation calculator<\/a> to adjust for it.<\/li>\n<li><strong>Zero deferral.<\/strong> Setting the deferral period to 0 reduces the calculation to the immediate case, which you can cross-check with the <a href=\"https:\/\/wpcalc.com\/en\/finance\/immediate-ordinary-annuity\/\">immediate (ordinary) annuity calculator<\/a>.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Calculates the fixed periodic payment of a deferred annuity. Enter the present value, annual interest rate, number of payments and the length of the deferral period in years to see the payment once payouts begin.<\/p>\n","protected":false},"author":70,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5],"tags":[25],"class_list":["post-223","post","type-post","status-publish","format-standard","hentry","category-finance","tag-interest"],"acf":[],"_links":{"self":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/223","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/users\/70"}],"replies":[{"embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/comments?post=223"}],"version-history":[{"count":3,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/223\/revisions"}],"predecessor-version":[{"id":67275,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/223\/revisions\/67275"}],"wp:attachment":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/media?parent=223"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/categories?post=223"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/tags?post=223"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}