A system and method for annuity valuation. The system of the present invention comprises a processor for execution of the method of the present invention and a data storage device for storage of data related to annuity accounts. The system also comprises an input device for input of variables and parameters related to the method of the present invention. The system may also comprise an output device for transmission of or display of data related to annuity accounts. The method of the present invention comprises the application of different interest (earnings) rates for a plurality of time periods during the term of the account. The present invention operates and in and appropriately reflects changes in increasing, declining, and steady interest rate environments. Annuities offered utilizing the present invention afford the company the opportunity to provide credits for reinvestment. Also, variables of the present invention allow companies to offer a myriad of different annuity products to its customers.