Finance

Immediate Annuity Calculator

Calculate guaranteed monthly income from a lump sum purchase of an immediate annuity.

Lump Sum (Premium) ($)

Annuity Rate (%/yr)

Payout Period (years)

Or "Life" — enter expected remaining years

Payout Frequency

Formula:
Payment = PV × r / [1 − (1+r)^−n]
Where PV = premium, r = periodic rate, n = total periods
Total Received = Payment × n

What is an Immediate Annuity?

An immediate annuity (SPIA) converts a lump sum into guaranteed periodic income starting right away. Insurance companies use mortality tables to price lifetime annuities, giving older purchasers higher monthly payments.