Annuity Payout Calculator

Calculate monthly income you can receive from a lump-sum annuity for life or a fixed period.

Annuity Calculator

Present Value

₹67,100.81

Total Payments

₹1,00,000

Interest Discount

₹32,899.19

Ordinary annuity: payments at end of period

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Annuity Payout Calculator Formula & How It Works

PMT = PV × r ÷ [1 − (1+r)^−n] | For life annuity: use life expectancy for n
  • PV = Lump sum used to purchase annuity
  • r = Monthly interest/discount rate
  • n = Expected payout period (life expectancy for life annuity)
  • Life expectancy at 65 (US): ~20 years for male, ~22 for female

Annuity payout rates (how much income per $1,000 premium) depend on interest rates, your age, and payout type. Older annuitants get higher monthly payments because the payout period is shorter. A $100,000 immediate life annuity for a 65-year-old typically pays $500–$600/month depending on rates.

Annuity Payout Calculator FAQs

How much monthly income does a $500,000 annuity pay?

A $500,000 immediate life annuity for a 65-year-old at current rates pays approximately $2,500–$3,000/month for life. Rates vary by insurance company, so compare quotes. Adding a joint-survivor option reduces the payout by 10–15%.

What happens to an annuity when you die?

Life-only annuity: payments stop at death, nothing to heirs. Life with period-certain: payments continue to beneficiary for remaining guarantee period. Joint-survivor: payments continue to surviving spouse. Cash refund: heirs receive the remaining principal. Choose based on legacy goals.

Is annuity income taxable?

Tax treatment: qualified annuity (funded with pre-tax money like IRA) — all payments taxable. Non-qualified (after-tax money) — only the earnings portion is taxable (exclusion ratio). Consult a tax professional for your specific situation.

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