See the monthly income a lump sum could buy as a guaranteed annuity.
An immediate annuity calculator estimates the guaranteed monthly income a lump sum could buy, converting savings into a paycheck that lasts for life or a set period.
An immediate annuity trades a lump sum to an insurer for a stream of payments that starts right away, often guaranteed for life. It's a way to cover essential expenses with income you can't outlive, shifting the risk of running out of money to the insurer. The trade-off is giving up access to the lump sum.
Real annuity payouts depend on your age, current interest rates, and options like a survivor benefit or period-certain guarantee, older buyers and higher rates mean larger payments. This calculator uses a simplified payout rate for a ballpark; because products and terms vary widely, always compare current quotes from several insurers before committing.
It depends on the premium, your age, and interest rates. This tool gives a simplified estimate, get current quotes for exact figures.
A contract where you pay a lump sum and receive income starting right away, often guaranteed for life. It protects against outliving your savings.
You give up access to the lump sum, and payments may not keep pace with inflation unless you add that feature.
See the exact formula and a worked example on our methodology page.