Annuity Payout Calculator (Immediate or Deferred)

How to do it

1. 1
   Step 1: Open Annuity Payout Calculator (Immediate or Deferred) and add your input

   Type your numbers or text, add your file, or pick the options you need. Nothing is uploaded: everything stays in your browser.

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   Step 2: What Annuity Payout Calculator (Immediate or Deferred) does

   Estimate the monthly income an annuity can pay, with a deferral period and yearly increases.

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   Step 3: Read the result and compare

   The result appears at once. Change one value to see how the answer moves, then keep the figure that fits your case.

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   Step 4: Copy or save it

   Copy the result or download it. For an important decision, confirm it with the official source or an adviser.

About this tool

Enter a lump sum, the interest rate, how many years the income should last, an optional deferral period and an optional yearly increase. The calculator shows the first and last monthly payment, the total paid and the payout rate.

How the payment is worked out

The money earns the rate you choose during any deferral period. At the start of the payout the value is spread over the payout years so that the account reaches zero after the last payment. Payments are made at the end of each month.

Increasing payments

If you enter a yearly increase, the payments rise every month by the equivalent monthly step, so the first payment is lower and the last is higher. The first payment is what you can compare with a level payment.

What the model leaves out

Real annuities add insurance company charges, may pay for life instead of a set number of years and have surrender terms and taxes. Use this as a comparison with the rate an insurer quotes, not as a quote.

Worked example

A $300,000 lump sum at 5% paid over 25 years gives $1,734.41 a month, a total of $520,324. The same lump sum deferred for 10 years first grows to about $488,700 and then pays much more per month.

Tips for best results

Check every box before you rely on a result, because one wrong digit changes the whole answer. Use the exact figures from your payslip, bill, certificate or contract, and keep a note of the date you calculated. Rates, thresholds and rules change from time to time, so for tax, fees and legal matters treat the output as an estimate and confirm with the official source named on this page. You can run as many scenarios as you like; nothing is saved or sent, and refreshing the page clears the boxes.