Fee drag calculator

Rider fee vs. 0% floor

Transparent formula calculator using the inputs below. No carrier rate table is used or exposed.

Inputs

Break-even credit

1.27%

Needed to offset fee

Principal lost

$29,550

Total fees

$29,550

11.8% of premium

Final value

$220,450

88.2% retained

YearCreditFeeValue
1$0$3,125$246,875
2$0$3,086$243,789
3$0$3,047$240,742
4$0$3,009$237,732
5$0$2,972$234,761
6$0$2,935$231,826
7$0$2,898$228,928
8$0$2,862$226,067

Credited rate is min(index return, cap), floored at 0%. Rider fee is deducted after credited interest each year.

What this estimate is good for

Use it to see the crediting rate needed to overcome the rider charge, how fees compound in flat years, and how much account value remains before comparing actual products on AnnuityRatesHQ.