Annuity Payout Calculator
Project the income a starting principal produces over a fixed payout term.
The amount you would annuitize or draw down for income.
The rate the remaining balance earns during the payout phase.
How long the income should last.
This content is for educational purposes only and does not constitute financial advice. Consult a qualified financial advisor before making financial decisions.
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How the Annuity Payout Calculator Works
This calculator uses the standard level-payment annuitization formula. It solves for the payment that spends down a starting principal over a fixed term while the remaining balance keeps earning the annual rate you set. The formula is PMT = P × r / (1 − (1 + r)−n), where P is your principal, r is the rate per payment period, and n is the total number of payments.
Because the unpaid balance keeps earning while payments go out, the total you collect over the term is larger than the principal you started with. Run $250,000 for 20 years at 5% and the schedule shows why. Income arrives every month, yet the balance declines slowly in the early years and only accelerates toward zero near the end of the term.
Insurers run this same math when they quote a fixed-period income annuity, then adjust it for their costs and, on lifetime options, for your age. In other words, treat the result as a clean benchmark, not a quote. If you were quoted meaningfully less than the calculator shows for the same principal, rate, and term, ask the insurer what accounts for the gap.
How Much Does a $100,000 Annuity Pay Per Month?
A $100,000 annuity pays roughly $550 to $700 per month for life, or about $660 per month over a fixed 20-year payout at 5%.
The term you pick changes the number more than anything else. At the same 5% annual rate, $100,000 pays about $1,061 per month over 10 years, about $660 per month over 20 years, and about $585 per month over 25 years. Shorter terms return your principal faster, so each check is bigger.
Lifetime options work differently. A 65-year-old buying a single-life immediate annuity might see roughly $600 to $650 per month per $100,000, while a younger buyer receives less because the insurer expects to pay over more years. Annuities are a mainstream income tool, with more than 55 million individual annuity contracts in force in the United States as of 2024 according to the National Association of Insurance Commissioners (NAIC) (opens in a new tab). Our annuity vs. lump sum guide compares the income route against taking cash if you are still deciding between the two.
What Payout Options Do Annuities Offer?
Annuities pay out through four main options: a fixed period, a single lifetime, joint and survivor lifetime coverage, or systematic withdrawals you control.
The fixed-period option is the most common choice we can model exactly, and it is what this calculator projects. Here is how the four compare:
- Fixed period (period certain). Payments run for a set term, such as 10 or 20 years. If you die before the term ends, the remaining payments go to your named beneficiary.
- Life only. Payments continue as long as you live and stop at death. This produces the highest monthly check but leaves nothing for heirs.
- Joint and survivor. Payments continue for two lives, usually spouses, at a lower monthly amount than a single-life option.
- Systematic withdrawals. You leave the contract unannuitized and take withdrawals on your own schedule, subject to the contract terms and possible surrender charges.
The beneficiary side of these options matters more than most people expect. We go deeper into what happens to remaining payments at death, including the spousal and non-spousal rules, in our inherited annuity guide.
What Affects How Much Income You Receive?
Four inputs drive annuity income: the principal, the rate the balance earns, the length of the payout term, and the payment frequency.
If you landed here comparing payout quotes from insurers, those four inputs are where the quotes diverge. Rates move with the broader interest rate environment, and the higher-rate market of 2026 supports stronger payout quotes than the near-zero years of 2020 and 2021. Term length is the lever you control most directly. Frequency matters least, though monthly payments draw the balance down slightly differently than one annual check.
For lifetime options, add a fifth input, your age. Insurers price lifetime income on mortality tables, so two people with the same principal can receive very different monthly amounts. Taxes are the other quiet variable. Our annuity tax calculator estimates how a withdrawal or an annuitized payment stream splits between taxable earnings and the tax-free return of your original investment.
Receiving annuity payments and want cash instead?
CSF purchases annuity payment streams nationwide. Tell us about your payments and we will quote a lump sum, free and with no obligation.
Projecting Income vs. Pricing a Buyout
This page answers one question, how much income a principal can produce. Plenty of visitors need the reverse. They already receive annuity payments and want to know what those payments might be worth as one lump sum today. That is a different calculation with different inputs, and our annuity buyout calculator handles it.
The distinction matters because the two numbers move in opposite directions. When rates rise, a given principal produces more income, while an existing payment stream fetches relatively less from a buyer. Knowing which side of the transaction you are on is the first step in reading any annuity quote.
Can You Sell Annuity Payments Instead of Waiting?
Yes. If you already receive annuity payments, you can sell some or all of them to a funding company in exchange for one lump sum.
We see this most often with inherited annuities and with contracts people bought years ago whose payments no longer fit their lives. Someone receives $800 a month and needs $40,000 for a roof, a medical bill, or a debt that will not wait. Selling a portion of the payments solves the timing problem while the rest of the stream keeps arriving.
We have closed more than 4,000 transactions, and we will not be beat on price. Get quotes from two or three companies before you decide. We say that because we know what happens when people compare, they usually come back to us. Our guide to selling annuity payments walks through the process step by step. Have questions about what your payments are worth? Call us at (800) 317-3769. That gets you a direct line to our team, not a call center.