Use this free immediate annuity calculator to see how much monthly income a lump sum can buy for the rest of your life. Enter your deposit, the payout per $100,000, and your age to see your monthly and yearly income — and the age when you’ll have gotten back every dollar you put in.
Turn a lump sum into a monthly paycheck for life — see what it pays and when you get your money back.
Monthly income for life
—
Yearly income
—
You get your money back by
—
Total income received by age
Income by age table
| Age | Income that year | Total received |
|---|
Payouts differ by hundreds of dollars a month between companies. I’ll quote them all for your exact age and amount.
Get My Free QuoteFor education only — not a quote, offer, or illustration of any specific annuity. You supply the payout figure; actual payouts depend on your age, sex, payout option, the insurance company, and the date you buy. Assumes a life-only payout with level monthly payments and no cost-of-living increase; payments stop at death unless you choose a refund or period-certain option, which pays less. Taxes not shown. Guarantees depend on the issuing insurance company’s claims-paying ability. Kevin Edwards, Integrity Now Insurance Brokers, CA License #0D42517.
How to use the immediate annuity calculator
- Enter how much you’d put in. This is the one-time premium you’d use to buy the annuity.
- Enter the monthly income per $100,000. This is how insurance companies quote immediate annuities. It depends mostly on your age when payments start. Look up current figures by age on our weekly California SPIA rates page, then enter the number for your age here.
- Enter your age. The calculator uses it to show how your income adds up by each birthday and when you break even.
The calculator shows your monthly income, your yearly income as a percentage of your deposit, and a chart of the total you’d receive by age. Open the table below the chart to see every year.
How an immediate annuity works
An immediate annuity — also called a single premium immediate annuity (SPIA) or an income annuity — turns a lump sum into guaranteed income that starts within a year, usually the next month. With a life-only payout, the insurance company keeps paying for as long as you live, even if you live well past 100. It works like a personal pension.
The math in the calculator is simple: monthly income = (deposit ÷ $100,000) × payout per $100,000. The “money back” age is your deposit divided by your yearly income, added to your starting age.
Why the payout rate isn’t an interest rate
If your yearly income is 7.8% of your deposit, that doesn’t mean you’re earning 7.8%. Each payment is part interest and part your own money coming back to you. The payout is higher than CD or bond yields because it also spreads your principal across your expected lifetime — and because of mortality pooling, people who live longer are paid in part by those who don’t.
What affects how much an immediate annuity pays
- Your age. The older you are when payments start, the higher your monthly income.
- Single or joint. Income that continues for two lives (for example, you and your spouse) pays less per month than income for one life.
- Payout option. Adding a refund or a guaranteed period lowers the monthly amount but makes sure your heirs get something if you die early.
- Interest rates. When rates are higher, insurers can pay more income for the same deposit.
- The insurance company. Payouts for the same person can differ by a meaningful amount from one carrier to the next.
Payout options at a glance
| Option | How long it pays | Monthly income |
|---|---|---|
| Life only | Your lifetime; nothing to heirs | Highest |
| Life with period certain | Your lifetime, but at least a set number of years (such as 10) | Slightly lower |
| Life with cash or installment refund | Your lifetime; heirs get any unpaid premium | Lower |
| Joint and survivor | As long as either spouse is living | Lower |
The calculator assumes a life-only payout with level payments. If you choose a different option, enter the matching payout per $100,000.
Immediate annuity calculator FAQs
How much does a $100,000 annuity pay per month?
It depends mostly on your age and the payout option. Older buyers get more because payments are expected to last fewer years. Our California SPIA rates page shows current monthly income per $100,000 at ages 65, 70, and 75, updated weekly.
What happens to my money if I die early?
With a life-only payout, payments stop at death and nothing goes to your heirs. If that’s a concern, choose a period-certain or refund option, which guarantees your beneficiaries receive at least part of your deposit back.
Can I get my money back after I buy?
Generally no. An immediate annuity trades access to your lump sum for guaranteed lifetime income, so most contracts can’t be cashed in after the free-look period. Only use money you won’t need for emergencies.
How are immediate annuity payments taxed?
If you buy with after-tax (non-qualified) money, part of each payment is treated as a tax-free return of your principal until you’ve recovered it, and the rest is taxable. If you buy with IRA or 401(k) money, payments are generally fully taxable.
Is an immediate annuity the same as a QLAC?
No. A qualified longevity annuity contract (QLAC) is a deferred income annuity bought with retirement-plan money, with payments that start years later — often in your 80s. An immediate annuity starts paying right away.
Get your exact immediate annuity quote
I’m Kevin Edwards, an independent California-licensed annuity agent. I’ll quote immediate annuities from multiple carriers for your exact age, amount, and payout option so you see the highest guaranteed income available. Request a free immediate annuity quote or call (877) 854-7396.
More tools: fixed annuity calculator · fixed index annuity calculator · all annuity calculators