Annuity Payout Calculator
Enter a premium, an assumed payout rate, and a payout period to see the periodic income an annuity could generate. This is the standard annuitization math insurers use for period-certain payouts — real quotes also depend on your age, the product, and the insurer.
Illustrative only, based on the assumptions you enter — not a quote, an offer, or financial advice. Rates and rules change; verify current figures with a licensed professional before acting.
How this calculator works
The calculator spreads your premium plus interest evenly over the payout period, using the same amortization formula that applies to a period-certain annuity: each payment is part return of your own principal and part interest.
A "life only" annuity works differently — the insurer prices it with mortality tables, so payments run for life however long that is, and quotes vary between insurers. Use the result here as a sanity check against real quotes, not a substitute for them.
Frequently asked questions
What payout rate should I assume?
A period-certain annuity payout is driven by bond yields at the time you buy. Rather than guessing, get two or three real quotes and use this calculator to check the internal rate they imply.
Why is my payment higher than the interest rate suggests?
Because each payment returns part of your own principal as well as interest. That is also why the money is gone at the end of a period-certain payout.
Does this work for life annuities?
Only roughly. Life-only payouts depend on mortality assumptions, so two insurers can quote different incomes for the same premium. Treat a fixed period equal to your life expectancy as a rough approximation.
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This tool is for general education only and is not financial, tax, or legal advice. Results are illustrations based on your inputs — not quotes or guarantees. Consult a licensed professional before making decisions about annuities, settlements, or retirement accounts.