Calculators
Annuity income calculator
Two tools on one page. The estimate uses published 2026 survey payout rates to show roughly what a deposit could pay for life; it is an illustration, not a quote, and no web page can give you a quote. Once you have real quotes, the comparison below turns them into payout rates you can set side by side and works out the deposit a given income would take. Your entries stay in your browser.
Estimate what a deposit could pay
A single premium immediate annuity, one life, income starting within a year. Leave the payout rate at zero to use the 2026 survey midpoint for your age, or enter the rate from a quote you already have.
How this is calculated
An immediate annuity turns a deposit into a monthly payment for life. The payout rate is not an interest rate: it blends interest with a return of your own money spread over your expected lifetime, which is why it looks higher than a bond yield and why it rises with age.
Income
Deposit times payout rate, divided by twelve.
deposit x payout rate / 12
Getting your deposit back
How many years of payments add up to what you put in. Live past that point and the annuity has paid out more than it took.
deposit / yearly income
Doing it yourself
The deposit grown at your assumed return, less the same yearly income withdrawn at the end of each year, carried to your planning age. It ignores taxes, fees and the order of good and bad years.
deposit x (1+r)^n - income x ((1+r)^n - 1) / r
Starting assumptions, and where each one comes from
| Assumption | Default | Source |
|---|---|---|
| Payout rate, age 60 | 7.6% | Midpoint of 2026 industry survey figures for a single life, life-only immediate annuity, as used in our annuity income articles. |
| Payout rate, age 65 | 8.1% | Same survey, midpoint. |
| Payout rate, age 70 | 8.9% | Same survey, midpoint. |
| Payout rate, age 75 | 10.2% | Same survey, midpoint. |
| Return if invested yourself | 4% a year | An assumption for comparison only, not a forecast. |
Sources
- Industry survey of single premium immediate annuity payouts, 2026 (as summarized in our annuity income articles) (2026)
- NAIC — What You Should Know Before Buying an Annuity (2026)
Important
This is an illustration, not a quote or a recommendation. Actual income depends on your age and sex, the payout option, whether the contract covers one life or two, the insurer, and interest rates on the day the contract is issued.
Annuity guarantees are obligations of the issuing insurer and depend on its financial strength and claims-paying ability. Annuities are not bank products and are not FDIC-insured. Florida residents may be protected up to statutory limits by the Florida Life and Health Insurance Guaranty Association.
An immediate annuity is generally irrevocable: once income starts, the deposit is no longer a sum you can withdraw. Keep separate savings for emergencies.
Taxes are not included. Income from pre-tax retirement money is generally taxed as ordinary income; with after-tax money, part of each payment is a return of your own principal and is not taxed as income. This is not tax advice.
Your answers stay in your browser. Nothing is sent to us unless you choose to enter your email at the end.
Common questions
Is the payout rate the same as an interest rate?
No. Part of every payment is your own money coming back to you. That is why an 8% payout rate does not mean an 8% return, and why the rate is higher the older you are when income starts.
What happens to the money if I die early?
With the life-only option shown here, payments stop at death and nothing goes to heirs. A period-certain or refund option guarantees your beneficiaries get something back, in exchange for a smaller monthly payment.
Why does the comparison matter?
It shows the trade. Investing the money yourself keeps it flexible and may leave something for heirs, but the income can run out if you live long or markets do poorly. The annuity removes that risk and gives up the flexibility.
How do I get a real number?
A licensed agent can request quotes for your exact age, deposit and payout option from several insurers. Payouts for the same structure differ between companies, and a quote is only good for a short time because it follows interest rates.
How much monthly income would an immediate annuity pay me? v1.0.0 · 1982beb915e6
Compare up to three quotes
Enter the deposit and the monthly income each quote offers. Compare only quotes with the same payout option and the same start date — a life-only quote against a life-with-refund quote is not a comparison.
Quote A
Quote B
Quote C
The figures above are placeholders to show the shape of the tool, not quotes. A payout rate is not an interest rate and not a return: most of each payment is your own money coming back. The years-to-return figure ignores interest and tax, and it is not a prediction of how long payments last — a life payout continues for life.
How much deposit would a given income take?
Enter the monthly income you want the annuity to cover, and the payout rate from a real quote.
If you do not have a quoted rate yet, leave this one until you do. Entering a guess produces a confident-looking number built on nothing.
How it is calculated
- Annual income = monthly income × 12.
- Payout rate = annual income ÷ deposit, shown as a percentage.
- Years to return the deposit = deposit ÷ annual income, undiscounted.
- Deposit required = (monthly income wanted × 12) ÷ payout rate.
No assumption about interest, inflation, life expectancy or taxes is made anywhere in this tool. That is deliberate: every one of those would be a guess about your situation, and the arithmetic above is the part that is actually comparable across quotes.
What the numbers do not tell you
- Which payout option each quote is for. Life only pays the most and leaves nothing behind; a refund or period-certain option pays less and protects your heirs. Compare like with like.
- Whether payments rise. A level payment loses purchasing power — see inflation and annuity income.
- Who is behind the promise. Lifetime income rests on the insurer’s claims-paying ability.
- What it costs to change your mind. Income annuities are generally irrevocable once payments begin.
Two articles worth reading alongside this: what actually sets the income an annuity pays, and immediate income annuities.
Get real numbers
Request an annuity quote and we will come back with more than one insurer, on the same deposit and the same payout option, so the comparison above is worth doing.
Lifeworth Insurance Agency is a trade name of Lifeworth Financial Group LLC, licensed in Florida, National Producer Number 21228343. Licensing and credentials · Privacy policy
This calculator is general information, not tax, legal or investment advice, and it is not a quote or an offer. Annuities are insurance contracts, not bank deposits. They are not FDIC insured and all guarantees are backed by the claims-paying ability of the issuing insurer. Payout rates vary by insurer, age, payout option and the date of the quote.