Start with your available balance
Enter the amount you expect to use for income. A larger opening balance generally supports a larger regular payment over the same term.
Annuity income estimator
Turn a lump sum into a clearer income plan.
Estimate how much a fixed annuity could pay over time. Adjust the assumptions to compare a few practical scenarios.
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No information storedYour figures stay in this calculation.
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Transparent assumptionsEvery input is visible and adjustable.
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Educational estimateUse this as a planning guide, not financial advice.
A practical guide
What an annuity estimate can tell you
An annuity turns a pool of money into a planned stream of payments. This calculator helps you test the relationship between your starting amount, payout period, and assumed rate of return.
Choose a realistic rate
The rate represents a fixed annual assumption before fees and taxes. Try a few different rates to see how sensitive the payment can be.
Set the income timeline
A shorter term usually produces a larger payment, while a longer term spreads the same balance across more payments.
How the estimate is calculated
Clear assumptions, no hidden steps.
For a standard annuity, the calculator estimates a fixed payment using your opening balance, periodic rate, and total number of payments. If you select payments at the beginning of the period, the estimate adjusts for that earlier timing.
Standard payment formula
Payment = P × r ÷ [1 − (1 + r)−n]
- P
- Starting principal
- r
- Periodic interest rate
- n
- Total number of payments
Common questions
Annuity calculator FAQs
How does an annuity calculator work?
It uses a mathematical formula to estimate equal payments from a starting balance over a chosen term. The estimate reflects your payment frequency and assumed fixed annual rate.
What is the difference between an ordinary annuity and an annuity due?
An ordinary annuity pays at the end of each period. An annuity due pays at the beginning of each period. Because the money is available earlier, a beginning-of-period payment is usually slightly lower for the same starting balance and term.
Can I calculate monthly annuity income?
Yes. Choose Monthly under payment frequency to see a monthly estimate. You can also switch to quarterly or annual payments to compare the same plan in a different cadence.
Does this account for taxes, inflation, or insurer fees?
No. This is an educational estimate based on a fixed rate and level payments. Taxes, inflation, fees, withdrawal features, guarantees, and the financial strength of the issuer can all affect a real-world decision.
A note on financial decisions
This calculator is for general education and planning only. It does not provide investment, tax, legal, or insurance advice. Consider discussing a specific annuity product with a qualified financial professional before making a decision.