How to use this annuity calculator
Enter your principal (the lump sum), an annual rate, and your payment frequency. Choose Fixed Period to draw income for a set number of years, or Lifetime Income to spread it across your life expectancy. Set a deferral period if you want the money to grow before payouts begin.
Two optional inputs make the estimate more realistic. The Annual Fee / Expense (%) field is subtracted from your rate for both the growth and payout phases — leave it at 0 for a fixed or immediate annuity (those rates are already net of fees), or enter the all-in fees for a variable or deferred product. To cover a spouse, switch to Lifetime Income and tick “Cover a spouse (joint & survivor)” — you’ll get fields for your spouse’s age, life expectancy, and the survivor percentage.
Immediate vs deferred, fixed vs lifetime
- Immediate (deferral 0) — income starts now.
- Deferred — principal grows tax-deferred for several years, then pays larger amounts.
- Fixed period — pays for a set number of years, then ends.
- Lifetime — estimated to last through life expectancy; payments are usually smaller per period.
- Joint & survivor (Lifetime mode) — pays while either you or your spouse is living, continuing to the survivor at 100%, 75% or 50%; covering two lives lowers the payment.
- Fees — an optional annual fee is subtracted from your rate; 0 for fixed/immediate (already net), ~2–3% for many variable/deferred products.
Frequently asked questions
How does an annuity calculator work?
It takes your lump sum, rate and payout structure and solves for the income per period — amortizing principal plus growth over a fixed term, or across life expectancy for lifetime income.
What's the difference between immediate and deferred?
Immediate pays now; deferred lets the principal grow first, producing larger payments later.
Fixed-period vs lifetime income?
Fixed pays for a set number of years; lifetime is estimated to last through your life expectancy, so per-period payments are usually smaller.
Can I include a spouse (joint & survivor)?
Yes. In Lifetime Income mode, turn on “cover a spouse” to model a joint & survivor annuity. It pays while either of you is living and then continues to the survivor at the percentage you choose (100%, 75% or 50%). Because it covers two lives, the payment is lower than a single-life annuity on the same principal.
How do fees affect my annuity?
Enter an annual fee percentage and it’s subtracted from your rate for both the growth and payout phases. Fixed and immediate annuities are usually quoted net of fees, so leave it at 0; variable and deferred annuities often carry 2–3% in mortality, rider and fund fees that compound against you, especially over a long deferral.
Related calculators & guides
This calculator is for educational and planning purposes only and provides estimates, not financial advice. Annuity products and payouts vary by insurer. See how we calculate.