Annuity Calculator
Free annuity calculator: the monthly income a lump sum pays over a number of years, or how much regular deposits grow to, at the interest rate you choose.
What it does
An annuity is a series of equal payments over time. In payout mode this calculator finds the monthly income a lump sum can pay for a number of years at a given interest rate, until it runs out, the way a fixed-period annuity or a planned withdrawal works. In growth mode it finds how much equal monthly deposits grow to. Payments can be at the end of each month (ordinary annuity) or at the start (annuity due).
How to use it
- Choose payout (income from a sum) or growth (value of regular deposits).
- Type the amount or the monthly deposit, the interest rate and the number of years.
- Choose whether payments are at the end or the start of each month.
The arithmetic runs in your browser. Nothing you type is sent anywhere and nothing is stored, so you can use these with real numbers.
Frequently asked questions
Immediate or deferred annuity?
An immediate annuity starts paying soon after you buy it, which is what payout mode shows. A deferred annuity grows first and pays later, which is closer to growth mode followed by payout.
Why is the result different from an insurance company quote?
Life annuities pay for as long as you live, so insurers use mortality tables, and they also include fees and profit. This calculator shows the plain financial math for a fixed number of years.
What does inflation do to an annuity?
A fixed payment buys less every year. At 3% inflation, a payment loses about a quarter of its buying power in 10 years. Some annuities offer payments that rise each year, starting lower.
End or start of the month: what changes?
When payments are at the start of each period, each one has one month less (or more) of interest. A payout is a little smaller and a growth value a little bigger than with payments at the end.
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