How It Works
Three steps to a clear, honest payout estimate.
Enter your details
Principal amount, annuity type, payout period, expected rate, and frequency. Takes 30 seconds.
Get your estimate
See low / expected / high payout estimates with a full breakdown of principal, interest earned, and total payout.
Understand your options
Read our guides on annuity types, taxes, surrender charges, and Medicaid before you sign anything.
Annuity Types Explained
Understand which annuity structure fits your retirement plan.
Fixed Annuities
Guaranteed interest rate, predictable monthly income. Best for retirees who want certainty and zero market exposure.
See current fixed rates →Variable & Indexed
Variable annuities invest in market subaccounts; indexed annuities tie returns to a market index with caps and floors. Higher upside, more risk.
Compare annuity types →Lifetime Income
Annuities can provide guaranteed income for life, protecting against the risk of outliving your savings — known as longevity risk.
Are annuities worth it? →Frequently Asked Questions
How is the annuity payment calculated?
The calculator uses the standard amortization formula: PMT = P × (r / (1 − (1 + r)^−n)), where P is principal, r is the periodic interest rate, and n is the total number of payments. This is the same formula insurers use to convert a lump sum into a stream of payments.
What's a realistic interest rate for an annuity in 2026?
Fixed annuity rates from highly-rated insurers currently sit between 4.5% and 6.5% for 5- to 10-year MYGAs. Variable annuity returns vary widely with the market. Indexed annuities typically credit 3–6% depending on cap and participation rates.
Should I take a lump sum or annuitize my pension?
It depends on your health, longevity expectations, and whether you need flexibility. Annuitizing locks in income but eliminates control. A lump sum gives flexibility but you must manage the money. Many retirees split — annuitize part, invest the rest.
What fees should I watch for?
Variable annuities are notorious for layered fees: mortality and expense (M&E) charges (~1.25%), subaccount fees (~1%), administrative fees, rider fees (0.5–1.5%), and surrender charges. Always request a fee disclosure in writing before signing.
Are annuities FDIC-insured?
No. Annuities are insurance products, not bank products. They are backed by the issuing insurance company's claims-paying ability. State guaranty associations provide partial protection (typically up to $250,000–$500,000) if the insurer fails.
What happens to the annuity when I die?
It depends on the payout option. A 'life-only' annuity stops at death with no death benefit. A 'period certain' annuity continues payments to a beneficiary for the remaining period. A 'joint and survivor' annuity continues paying a spouse. Choose carefully — this decision is usually irrevocable.
Related Reading
Before you buy an annuity, read these guides.
⚠️ Important Disclaimer: This tool provides educational estimates only based on standard amortization math. The information on this site does not constitute financial, tax, or legal advice. Annuity payouts depend on the specific insurer, contract terms, and prevailing interest rates. Consult a licensed financial advisor before purchasing or annuitizing.