Annuity Calculator
Calculate the income an annuity pays from a lump sum, or an annuity's future and present value. Ordinary or due, monthly to yearly.
Common scenarios
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Annuity Calculator
An annuity turns a lump sum into a stream of payments — or a stream of payments into a lump sum. Use payout mode to see how much income a lump sum could pay each month, future-value mode to project what regular contributions grow to, and present-value mode to find the lump sum needed to fund an income. Every result works for an ordinary annuity or an annuity due, at any payment frequency.
What is an annuity?
An annuity is a series of equal payments made at regular intervals. Its value depends on the payment amount, the interest (or discount) rate, how many payments there are, and whether each payment falls at the end of the period (ordinary annuity) or the start (annuity due). The payout of a lump sum over a fixed term is found by rearranging the present-value formula to solve for the payment.
Payout formula
PMT = (PV × r) ÷ (1 − (1 + r)⁻ⁿ)How to use the annuity calculator
Choose what to calculate: payout, future value, or present value.
Enter your lump sum (payout), contribution (future value), or desired payment (present value).
Set the annual interest rate, the term in years, and the payment frequency.
Pick an ordinary annuity or an annuity due.
Read the headline result, the summary tiles, and the year-by-year schedule.
What you can use it for
Retirement income
Estimate the monthly income a savings lump sum could pay over a fixed number of years.
Immediate annuity check
Sanity-check an insurer's immediate-annuity quote before you buy.
Saving toward a goal
Project what a monthly contribution grows to for retirement or a college fund.
Funding a target income
Find the lump sum you would need today to fund a chosen payment for years to come.
Why use this annuity calculator
Answer the real question
See how much income a lump sum like $100,000 or $500,000 can pay each month, not just an abstract value.
Three tools in one
Switch between payout, future value, and present value without leaving the page.
Ordinary vs due
Compare payments at the end or the start of each period — an annuity due always pays a little more.
See the whole picture
A year-by-year schedule and chart show how the balance grows or draws down to zero.
Annuity calculator FAQ
It depends on the interest rate and term. In this calculator, a $500,000 lump sum at 5% paid over 20 years works out to about $3,300 per month as a fixed-term (period-certain) annuity. A lifetime annuity from an insurer would instead be priced on your age and life expectancy.
As a rough guide, a $100,000 lump sum at 5% over 20 years pays about $660 per month in this calculator. A higher rate or a shorter term raises the monthly payment; a longer term lowers it.
An ordinary annuity pays at the end of each period; an annuity due pays at the start. Because each payment in an annuity due sits for one extra period of interest, an annuity due is always worth slightly more.
No. It calculates fixed-term (period-certain) annuities, where payments run for a set number of years. Lifetime annuities pay for as long as you live and are priced by insurers using your age and mortality tables, so their monthly amount will differ.
Payment = (PV × r) ÷ (1 − (1 + r)⁻ⁿ), where PV is the lump sum, r is the interest rate per period, and n is the number of payments. For an annuity due, divide the result by (1 + r).
Future value = PMT × ((1 + r)ⁿ − 1) ÷ r, plus any starting principal grown at (1 + r)ⁿ. It adds up every contribution plus the compound interest each one earns.
Use the rate the annuity or investment actually earns. Fixed annuities often quote 3–6%; a diversified retirement portfolio is often modeled at 5–7%. Try a few rates to see the range.
Often, yes — the earnings portion of a non-qualified annuity payment is taxed as ordinary income, and qualified (pre-tax) annuities are fully taxable on withdrawal. This calculator shows pre-tax amounts; check with a tax professional for your situation.