Annuity Income Calculator

About this calculator

An immediate annuity converts a lump-sum principal into a stream of regular income payments, typically for a fixed period or for life, in exchange for handing the principal over to an insurer. This calculator works the amortization math in reverse from a standard loan payment formula: given the principal, the payout rate (or interest rate) and number of payments, it solves for the periodic income amount, PMT = PV × r / [1 − (1 + r)^(−n)].

Retirees use immediate annuities to turn a 401(k) rollover or a windfall like an inheritance into predictable monthly income they can't outlive, trading investment flexibility for payment certainty. Because insurers price annuities using their own actuarial assumptions and fees, this calculator gives you a baseline income figure to sanity-check against any quote an insurance company offers.