Calculate Your Immediate Annuity's Payments

Use this calculator to estimate the monthly payments you will receive from an immediate annuity.

Explanation of the terms used:

Immediate annuity

If you want comprehensive information about annuities, how they work, their types, options and restrictions, read our guide Annuities Explained.

Immediate payment annuities are contracts, which are purchased with a single lump-sum amount in order to provide a guaranteed income stream that starts almost immediately (some annuities allow to defer the payments for up to a year).

They are particularly suitable for retirees concerned about outliving their retirement savings but have a couple of drawbacks.

  • For one, once you set up the annuity, you don’t have control over your funds – the immediate annuity is irreversible.
  • Second, the immediate annuity is terminated upon death of the annuitant – resulting in no money being returned to your estate in the event of a premature death.
Amount to invest

The amount that you want to invest in your immediate annuity.

Your life expectancy

The number of years for which you plan and expect to receive payments from your immediate annuity.

Annual rate of return

Naturally, the annual rate of return for your investment in an immediate annuity.

Frequency of payments

You can choose how often you can receive payments from your immediate annuity – every month, every quarter or annually.

Note that our calculator assumes that the distribution of payments always happen at the beginning of the period.