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CalculatorImmediateDeferredEstimateWhat could your savings pay every month?
A plain payout calculator for immediate and deferred annuities. You set the premium, the timing and the interest rate. It shows the payment that math produces, and we explain what a real quote adds.
Annuity payout calculator.
Enter a premium, when income starts, how long it lasts and an interest rate you choose. The calculator turns the lump sum into equal payments. It is an estimate built on your assumptions, not a quote from any insurance company.
Estimated payment
- Value when income starts
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- Total of all payments
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- Each payment is roughly
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- Payments run
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The same money at other rates
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How the calculator works.
It does two steps of plain arithmetic. First, if income starts later, the premium grows at the rate you chose until the start date. Second, that value is split into equal payments over the number of years you picked, with the unpaid balance still earning the same rate while payments go out. This is the same math behind a period certain payout, the simplest kind of income annuity.
The line that splits each payment into premium and interest matters for taxes. If you bought with savings that were already taxed, the premium part of each payment generally comes back to you tax-free and the interest part is taxable, under what the IRS calls the exclusion ratio. More on how annuities are taxed.
Why a real quote will be different.
Insurers do not use one flat rate. Each carrier prices its own contracts, its rates move with the bond market, and two carriers can quote noticeably different income for the same premium on the same day. That is why we compare several side by side.
A lifetime income annuity adds something no calculator with a fixed end date can show. The insurer pools many people's longevity, so payments continue however long you live, past any year you pick here. Lifetime pricing depends on your age when income starts and, in most states, your sex. Options such as a period certain, a refund or a joint and survivor payout lower the payment in exchange for protecting someone else. Read the trade-offs on our income annuity guide.
Six things that move the payment.
Try changing each one above and watch the estimate. On a real quote, these are the levers that matter most.
The premium.
Payments scale with the amount you put in. Double the premium and, on the same terms, you roughly double the payment.
Interest rates when you buy.
An income annuity locks in pricing on the day it is issued. Higher rates at purchase mean more income per dollar for the life of the contract.
When income starts.
Every year you wait gives the money time to grow and shortens the expected payout, so a deferred start buys more income per dollar.
How long it must last.
Spreading the same money over 30 years instead of 20 lowers each payment. Lifetime contracts are priced on how long you are expected to live.
Who else is protected.
A spouse, a period certain or a refund guarantee all reduce the payment. Life only pays the most and stops at death.
Built-in raises.
A yearly increase option helps against inflation. It starts with a smaller payment and catches up over time.
Where to go from your estimate.
Income annuities (SPIA)
Immediate and deferred income annuities, the payout options and QLACs, explained in plain English.
Fixed annuities and MYGAs
A set interest rate for a set number of years, often used to grow money before turning it into income.
Fixed indexed annuities
Growth linked to an index with protection from market losses, and optional lifetime income riders.
How annuities are taxed
Qualified versus non-qualified money, the exclusion ratio, withdrawals, RMDs and heirs.
Quick answers.
How do you calculate an annuity payout?
For a fixed number of years, take the value of the annuity when income starts and spread it into equal payments, with the remaining balance still earning interest while payments are made. That is the standard loan-style payment formula run in reverse. If income starts later, first grow the premium at the assumed rate until the start date. Lifetime payouts also use mortality tables, which is why only an insurer can price them.
How much does a $100,000 annuity pay per month?
It depends on your age when income starts, interest rates on the day you buy, how long payments must last, the payout option and, for lifetime income, usually your sex. Enter $100,000 and a rate you want to assume in the calculator to see the arithmetic. For a real number, ask for live quotes from several carriers, because rates change often and vary between insurers.
Is this calculator a quote?
No. It is arithmetic on the numbers you enter, including the interest rate, which you choose. A quote comes from an insurance company and reflects its own current rates, your age, your state and the payout option you pick. We can pull several quotes side by side at no cost.
Does it work for an immediate annuity?
Yes. Leave the start set to right away and the calculator estimates payments that begin at once and last the number of years you choose. That matches an immediate annuity with a period certain payout. A life-only immediate annuity has no end date, so its real payment comes from the insurer's pricing.
How does waiting change the payout?
Choose a later start and the premium grows at your assumed rate until income begins, so the same premium produces a larger payment. Deferred income annuities work on the same idea, and lifetime versions gain extra income per dollar because payments are expected to last fewer years.
What interest rate should I use?
Use a rate you are comfortable treating as a planning assumption, then try a point lower and higher to see how sensitive the result is. We do not publish rates on this page because they change often and differ by carrier, product, age and state. A live quote tells you the real number.
Is annuity income taxable?
Usually in part. Payments from an annuity bought with already-taxed savings are partly a tax-free return of your premium and partly taxable interest. Payments from an annuity bought with IRA or 401(k) money are generally fully taxable. See how annuities are taxed, and talk with a tax professional about your own situation.
Turn the estimate into real numbers.
Tell us the amount, when you want income to start and who it needs to cover. We will quote several carriers side by side across the payout options, so you can see what each guarantee costs in income, with no obligation to buy.
Not ready to talk? Get the free Retirement Flight Plan: 7 mistakes that ruin the landing.
Important: Annuities are insurance contracts, not bank deposits. They are not FDIC insured and are not guaranteed by any bank or government agency. Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Withdrawals above a contract's free amount during the surrender period may be subject to surrender charges and, on some contracts, a market value adjustment. Taxable amounts withdrawn before age 59½ may also be subject to a 10% IRS additional tax. Fixed indexed annuities are not a direct investment in the stock market or in any index. Products, features and availability vary by carrier and by state. iCoach Solutions offers fixed, fixed indexed and income annuities. We do not offer securities, including variable annuities, and we do not give investment, tax or legal advice: talk with a qualified tax professional about your own situation. This page is general education, not a recommendation.