See the monthly income your money buys, or grow a deferred annuity first
| Age at Purchase | Male Monthly | Female Monthly | Approx Annual Payout Rate |
|---|---|---|---|
| 60 | $545 – $580 | $515 – $550 | ~6.7% |
| 65 | $610 – $655 | $575 – $620 | ~7.5% |
| 70 | $685 – $745 | $650 – $705 | ~8.5% |
| 75 | $790 – $860 | $745 – $810 | ~9.8% |
Sample life-only quotes published mid-2025. These are illustrations, not offers: actual quotes vary by insurer, state, interest-rate environment, and payout options. Women receive slightly less per month because they live longer on average. Adding a survivor benefit or period-certain guarantee lowers the monthly figure.
| Payout Period | Monthly Payment | Total Received |
|---|---|---|
| 10 years | $1,085.26 | $130,232 |
| 15 years | $817.08 | $147,075 |
| 20 years | $687.89 | $165,093 |
| 25 years | $614.09 | $184,226 |
| 30 years | $567.79 | $204,404 |
Computed with the payout formula this calculator uses. Stretching the same $100,000 from 10 to 30 years roughly halves the monthly check but adds $74,000 of total interest, because the balance keeps compounding while it pays out.
An annuity is a contract with an insurance company: you hand over money, and they pay you a stream of income. An immediate annuity starts paying within a year; a deferred annuity grows first and pays later. A fixed annuity credits a guaranteed rate, while a variable annuity ties your balance to market investments, so payments can swing. This calculator models the fixed kind, which is the one most people are actually pricing.
Payout mode uses the standard annuity payment formula: monthly payment = P × r ÷ (1 − (1 + r)−n), where P is the principal, r is the annual rate divided by 12, and n is the number of monthly payments. Grow mode compounds your starting balance and monthly contributions forward: FV = P(1 + r)n + c × ((1 + r)n − 1) ÷ r, with contributions added at the end of each month. It then feeds that future value back through the payout formula over 20 years so you can see the income it would buy.
Pick a mode with the toggle. In Payout, enter the lump sum, the rate, and how many years you want the checks to last. In Grow, enter what you've got, what you'll add monthly, and how long until you need income. Every field recalculates live.
Say you retire with $500,000 and buy a 20-year fixed payout at 5.5%. The formula gives $3,439.44 a month, which is $41,273 a year, or 8.25% of your principal annually. Over 240 payments you'd collect $825,465 in total, meaning $325,465 of interest on top of your original money.
Now the deferred version. Start with $100,000 at age 50, add $500 a month at the same 5.5%, and leave it 15 years. You'd contribute $190,000 in total and the balance would grow to $367,131, with $177,131 of that being growth. Converted to a 20-year payout at the same rate, that buys about $2,525 a month.
One warning before you sign anything. Annuities carry fees that this calculator, and most sales brochures, leave out: administrative charges, rider costs, and surrender periods that can lock your money up for 5 to 10 years with penalties of 7% or more for early withdrawal. A great quoted rate with a long surrender period isn't a great deal. Compare the guaranteed income against simply drawing down a savings or investment balance before committing.
Over a fixed 20-year period at 5.5%, $500,000 pays $3,439.44 a month, which is $41,273 a year and $825,465 in total. A lifetime (life-only) immediate annuity bought at 65 pays roughly $3,050 to $3,275 a month for a man at mid-2025 quote levels, and slightly less for a woman because of longer life expectancy.
About $687.89 a month over a fixed 20-year period at 5.5%, or $165,093 in total. As a lifetime immediate annuity, mid-2025 quotes for a 65-year-old run roughly $610 to $655 a month for a man and $575 to $620 for a woman. Waiting until 70 lifts the male range to about $685 to $745.
An immediate annuity starts paying within a year of purchase: you hand over a lump sum and income begins right away. A deferred annuity grows first, often for 10 to 20 years, then converts to income later. Deferral buys a bigger payout because the balance compounds and, for lifetime annuities, because you start payments at an older age.
Yes, but how much depends on the money that funded it. Annuities bought with pre-tax dollars (an IRA or 401(k) rollover) are fully taxable as ordinary income. Annuities bought with after-tax dollars use an exclusion ratio: part of each payment is a tax-free return of your own principal and only the earnings portion is taxed. Withdrawals before 59½ can also trigger a 10% IRS penalty on earnings.
It depends on the payout option you chose. Life-only payments stop at death, even if that's one month in. Period-certain options keep paying a beneficiary for the remainder of the guaranteed window, joint-and-survivor options continue for a spouse's lifetime, and cash-refund options return any unpaid principal. Deferred annuities that haven't annuitized pass the account balance to your beneficiary.