Immediate Annuity Payout Calculator
Convert your retirement savings into a guaranteed paycheck for life or a fixed period.
Income Estimator
Understanding Annuity Payout Options
An immediate annuity (SPIA) acts like a personal pension. You give an insurance company a lump sum, and they give you a guaranteed paycheck for a set period or for life. This Annuity Payout Calculator helps you estimate that paycheck size.
Payout Options Explained
Period Certain (Fixed)
The income is guaranteed for a specific number of years (e.g., 10, 20 years). If you die before the term ends, payments typically continue to a beneficiary. If you live longer, payments stop.
Lifetime Income
The insurance company guarantees payments as long as you live, no matter how long that is. This protects against "longevity risk" (running out of money). However, payments usually stop at death with no remainder for heirs.
How Life Expectancy Affects Payouts
If you choose the "Lifetime" option, the calculator estimates your life expectancy based on standard actuarial tables.
For example, a 65-year-old female statistically lives longer than a 65-year-old male. Therefore, the female's monthly payments might be slightly lower because the insurance company expects to pay her for more years.
Inflation Warning
Most basic annuities pay a fixed dollar amount. $1,500 today buys a lot more than $1,500 will in 20 years. To see how much purchasing power you might lose, use our Inflation Calculator. Some annuities offer "COLA" (Cost of Living Adjustments) riders, but these start with a lower initial payout.
Disclaimer & Legal Notice
Estimates Only: This tool provides a mathematical estimate based on the rate of return you enter. Actual annuity quotes from insurance companies depend on current bond yields, their internal expense ratios, and specific mortality tables which change daily.
No Guarantees: Annuity guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.
Not Financial Advice: We are not insurance agents or financial advisors. Consult a professional before locking your money into an annuity contract.