About This Tool
A free educational calculator for retirement income planning.
Our Mission
American Annuity Calculator was built because annuity products are confusing on purpose. Insurance agents earn high commissions on annuity sales (typically 5–10% of the principal), which creates strong incentives to obscure how the math actually works.
Our tool uses the same standard amortization formula every insurer uses internally — the same math taught in every finance textbook — to give you an honest, educational estimate. No signup, no email, no sales call. Just the numbers.
How the Calculator Works
We apply the standard annuity payment formula:
PMT = P × (r / (1 − (1 + r)^−n))
Where P is your principal, r is the periodic interest rate, and n is the total number of payment periods. We also show a low/high estimate band reflecting realistic rate variation in fixed, variable, or indexed products.
What This Tool Is — and Isn't
This tool is:
- ✅ Free with no email or signup required
- ✅ Educational and informational only
- ✅ Based on standard amortization math
- ✅ Designed to help you prepare for advisor conversations
This tool is NOT:
- ❌ Financial, tax, or legal advice
- ❌ A guarantee of any specific payout
- ❌ Affiliated with any insurer or broker
- ❌ A substitute for licensed financial planning
Editorial Standards
Content on this site is reviewed by the Editorial Team — a practicing hospitalist physician with experience in financial literacy education for patients facing major life decisions. Our editorial policy is independent of any insurer, broker, or financial services firm. We do not accept compensation for product recommendations.
Your Privacy
The calculator runs entirely in your browser. We do not store, sell, or share your inputs. No personally identifiable information is transmitted. See our full Privacy Policy for details.