Annuity Calculator
Annuity Calculator
(Calculate your guaranteed annual income or the value of your lump sum) Input Your Details:
Type of Annuity:
✅ Immediate (start payouts now)
✅ Deferred (start payouts later)
Principal Amount: $_______ (total investment)
Your Age Now: _______
(for deferred annuities) Payout Start Age: _______ Annuity Duration: 🔄 Lifetime (guaranteed until death)
📅 Fixed Period (e.g., 10–30 years)
Estimated Annual Return (Interest Rate): _______% (e.g., 3–6%)
Inflation Adjustment? ✅ Yes / ❌ No (COLA increases)
Calculate:
💵 Estimated Monthly Payout: $_______
💰 Total Value Over 20 Years: $_______
How Things Work: Immediate Annuity Example:
Invest $100,000 at age 65 → ~$500–$600/month for life (at ~5% return).
Deferred Annuity Example:
Invest $200,000 at age 50, start payouts at 65 → ~$1,200–$1,500/month (15-year growth).
Fixed-Term vs. Lifetime:
Lifetime = Lower monthly payouts but never expires.
Fixed-Term = Higher payouts but stops after the term.
Key Factors Affecting Payouts:
Age: An older payout equals a greater monthly income. ✔ Interest Rates: Higher returns boost payouts.
✔ Inflation Protection: Reduces initial payouts but maintains buying power.
Example Calculation:
Type: Instantaneous Lifetime Principal: $150,000
Age: 65
Rate: 5%
Monthly Payout: ~$750 for life
Pros & Cons:
Income that is guaranteed (no market risk). Growth that is tax-free (for deferred annuities) ➖ Low liquidity (early withdrawal penalties).
Costs (beware of high commissions). Tips to Choose an Annuity:
Shop rates: Compare insurers for the best payout.
Consider riders: Add death benefits or inflation protection.
Mix with other investments: Don’t put all savings into an annuity.
Need help with your numbers? Share your details!
(Note: Estimates are illustrative. Consult a financial advisor for accuracy.)
Reviewed by Professional Tools
on
September 26, 2025
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