Free Annuity Calculator
Annuities trade a lump sum today for guaranteed payments later. Enter a purchase amount, payout length, and rate to see the monthly check, the total payout, and how much of it is your money versus growth.
This free annuity calculator prices payment streams with standard present-value math. For example, $250,000 buying a 20-year fixed payout at 5 percent produces about $1,650 a month, $396,000 total, with roughly $146,000 of that being interest. Longer payouts shrink the monthly check; higher rates raise it. Estimates only, not a product quote.
Estimates only, not an insurance quote or offer. Real annuity payouts depend on insurer pricing, fees, riders, age, and interest rates at purchase. Variable annuities carry market risk. Not financial advice.
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How annuity math works
A fixed annuity payout is priced with the present-value-of-annuity formula: payment = principal x r / (1 - (1 + r)^-n), where r is the rate per period and n is the number of payments. The insurer effectively reverses this: your lump sum buys as many payments as the rate supports.
Time cuts both ways. A longer payout period means more total dollars but smaller monthly checks, because the same principal spreads thinner. A 10-year payout on $250,000 at 5 percent pays about $2,650 monthly; stretching to 25 years drops it to about $1,475.
The crossover point matters: divide total payout by principal to see the multiple. In the example above, $396,000 total on $250,000 principal means 58 percent more dollars back, but spread over 20 years and eroded by inflation, which fixed payments ignore.
Annuity calculator questions
How much does a $100,000 annuity pay per month?
A 20-year fixed payout at 5 percent on $100,000 pays about $660 monthly, $158,400 total. Lifetime payouts depend on age and insurer mortality tables; a 65-year-old might see around $550 to $600 monthly for life. Actual quotes vary by insurer, fees, and current rates.
What is the difference between immediate and deferred annuities?
An immediate annuity suits someone retiring now who wants a paycheck next month. A deferred annuity suits someone in their 50s who wants the money to compound tax-deferred until 65 or 70, then convert to income. Deferred contracts often offer higher eventual payouts because the insurer holds the money longer.
Are annuities a good investment?
Annuities trade upside for certainty: fees and caps limit growth versus a plain investment portfolio, but the payments keep coming no matter how markets behave or how long you live. They make most sense for the portion of retirement spending that must be covered no matter what, alongside Social Security.
What fees do annuities charge?
Fixed and indexed annuities typically show no explicit annual fee; the insurer profits from the spread between what it earns and what it credits you, plus surrender charges if you exit early. Variable annuities layer mortality, administration, fund, and rider fees that can total 2 to 4 percent a year, which is why their net returns often disappoint.