Annuity Income Estimator
See how a lump sum could translate into monthly income — on assumptions you set and can change.
This is your assumption, not a rate offered by any carrier. Change it to see how sensitive the result is. A real quote would come from a carrier for a specific product, in your state, at your age.
Illustrative Planning Scenario — Not a Carrier Quote
Hypothetical monthly income
$417
$5,000 a year on the assumptions below
Assumptions used
- Amount placed
- $100,000
- Income begins
- Immediately
- Assumed annual payout rate (your figure)
- 5%
- Income basis
- Single life
- Funding
- Qualified (pre-tax)
This is an illustrative planning scenario, not a quote. It is arithmetic on the assumptions shown, not a rate offered by any insurance carrier.
Actual annuity income depends on the carrier, the product, your age at income start, the state you live in, current interest rates, and the specific contract terms and riders you select.
Nothing here is guaranteed. Growth shown during a deferral period is a hypothetical assumption you selected, not a projection and not a promise.
Withdrawals from a qualified annuity are generally taxable as ordinary income. Tax treatment depends on your circumstances; this is not tax advice.
What this calculator does
Most annuity calculators show you a monthly income figure and imply a carrier would pay it. Unless that site is connected to live, carrier-approved rate data, that number is invented.
This one is not connected to carrier rate data, so it does not pretend otherwise. There is no payout rate built into it. You choose the rate, and the tool does the arithmetic on the figure you chose and shows its working.
That makes it useful for the question it can actually answer — how sensitive is my income to the rate I get, and to how long I wait — and honest about the one it cannot: what any specific carrier would actually offer you.
How the maths works
- If income starts later, grow the amount placed at the annual rate you chose, for the number of years until it starts.
- Apply the annual payout rate you chose to that value.
- Divide by twelve for a monthly figure.
- Show every assumption used, so the figure can be checked or challenged.
Frequently asked questions
- Why do I have to pick the payout rate myself?
- Because inventing one would be dishonest. Real annuity payout rates depend on the carrier, the product, your age when income starts, your state and current interest rates. Any rate this site supplied would be a guess presented as a fact. Making it your input keeps the arithmetic useful and the claim truthful.
- So what rate should I use?
- Ask a licensed agent what is actually available to you right now, then put that number in here to see the effect of waiting longer or placing more. Until then, try a range and look at how much the answer moves — that sensitivity is the genuinely useful output.
- Is the growth figure a projection?
- No. It is an assumption you type in, compounded annually. It is not a forecast, not a guarantee, and no product is implied by it.
- Does it model joint income properly?
- No, and it says so with the result. Income covering two lives is generally lower than income covering one, because it is expected to be paid for longer. This tool does not model that difference; a real quote would.
- What about tax?
- Withdrawals from a qualified annuity are generally taxable as ordinary income, and non-qualified annuities are taxed differently again. The tool records which you selected but does not compute tax, because that depends on your whole situation.
Illustrative Planning Scenario — Not a Carrier Quote. Every figure shown is arithmetic on assumptions you selected, not a rate offered by any insurance company.
Actual annuity income depends on the carrier, product, your age at income start, your state, current interest rates, and the specific contract terms and riders selected.
Nothing shown is guaranteed. This is not financial, tax or legal advice.
You may have enough retirement assets to begin evaluating an income strategy.
See how a portion of retirement savings might be converted into more predictable retirement income. Figures shown are illustrative planning scenarios, not carrier quotes.