Annuity Payout Calculator

About the Annuity Payout Calculator

Estimate your monthly annuity payout using our free calculator. Choose from three payout options — Life Only (pays for your lifetime), Period Certain (pays for a fixed term), or Joint Life (pays for two lives). Enter your annuity value, age, and applicable payout period to see your estimated monthly income.

Once you've accumulated wealth in an annuity, the next critical step is deciding how to take income from it. Our annuity payout calculator helps you compare different payout options — Life Only, Period Certain, and Joint Life — so you can choose the structure that best fits your retirement income needs.

Each payout option serves a different purpose. Life Only maximizes your monthly income but offers no survivor benefits. Period Certain guarantees payments for a fixed term regardless of lifespan. Joint Life continues payments for a surviving spouse, providing valuable protection for couples.

How to Use This Calculator

Enter your total annuity value and select a payout option: Life Only, Period Certain, or Joint Life.
Enter the annuitant age (and joint age if applicable). For Period Certain, enter the number of payout years.
Click Calculate Payout to see your estimated monthly payout, total payout over life, and payout duration.

The Formula

The monthly payout is computed using the present value of an annuity formula, dividing the annuity value into equal monthly payments over the expected payout period at a 4% assumed return.

Monthly Payout = Value × (r × (1 + r)^n) / ((1 + r)^n − 1) where r = monthly rate, n = total payments

Frequently Asked Questions

What is the difference between Life Only and Period Certain?

Life Only pays you for your entire lifetime regardless of how long you live. Period Certain pays for a fixed number of years — if you pass away early, your beneficiary receives the remaining payments.

How is life expectancy determined?

The calculator uses simplified life expectancy estimates based on age. For Life Only, it assumes a life expectancy of 20 years at age 65, decreasing for older ages.

What is the difference between a fixed and variable payout?

This calculator models fixed payouts based on a 4% assumed return. Variable payouts fluctuate based on the performance of underlying investments and are not covered by this tool.

Can I change my payout option after annuitization?

Generally, once you annuitize and begin receiving payments, the payout option is irrevocable. It is important to choose carefully based on your income needs and family situation.

What happens to my annuity if I die before the period certain ends?

With a Period Certain option, if you die before the fixed term ends, your designated beneficiary will receive the remaining payments for the balance of the period. This provides a measure of protection for your heirs.