Annuity Payout Calculator
Monthly and annual income plus recoup years from premium and payout rate.
What it does
Immediate annuities trade a lump sum for lifelong checks: the insurer pools longevity risk and pays a fixed rate for life. A 7% payout rate turns $100,000 into $583.33 a month starting within weeks.
The tool above takes the premium with the quoted annual payout rate. It returns monthly and annual income with recoup years beside them.
The default of $100,000 at 7% pays $583.33 a month and $7,000.00 a year, recouping in 14.3 years. At 6%, $200,000 pays $1,000.00 a month with 16.7 recoup years.
The mechanics follow annuity buyer education with immediate annuity guides matching each term. Both stress shopping insurers, counting fees and riders, and weighing inflation erosion.
How to use
- Enter the lump sum premium quoted.
- Enter the annual payout rate percent.
- Read monthly first for budget income.
- Read annual to compare with spending.
- Read recoup years against life expectancy.
Formula
- rate
- Annual payout percent quoted for the age.
- monthly
- Annual divided by twelve.
- recoup
- Premium divided by annual income.
Illustrative fixed math; real quotes embed mortality credits, fees, and period certain options. Deferred versions pay more later for the same premium.
Worked example
Example: $100,000 at 7%
Defaults: premium 100000, rate 7%.
- Annual: 100,000 x 7% = $7,000.00.
- Monthly: 7,000 / 12 = $583.33.
- Recoup: 100 / 7 = 14.3 years.
- Past recoup every check is mortality profit.
- Tool shows $583.33, $7,000.00, 14.3 years to recoup.
Reference table
| Premium / rate | Monthly | Recoup |
|---|---|---|
| $100,000 / 7% | $583.33 | 14.3 years to recoup |
| $200,000 / 6% | $1,000.00 | 16.7 years to recoup |
| $100,000 / 5% | $416.67 | 20 years to recoup |
Limits
- Illustrative only; quotes vary by age and insurer.
- Inflation erodes fixed checks without riders.
- Surrender charges lock early exits.
- Guarantees stand on insurer solvency plus state funds.
Common mistakes
- Ignoring inflation over decades of fixed checks.
- Skipping rider costs inside the quote.
- Annuitizing everything with no liquid reserve.
- Chasing the top rate from weak insurers.
- Exchanging contracts and restarting surrender clocks.
Try it yourself
Quick checks. Answers sit tucked under each question.
$200,000 at 6%?
$1,000.00 a month, $12,000.00 a year, 16.7 years to recoup.
$100,000 at 5%?
$416.67 a month, 20 years to recoup.
Die early?
Without riders the leftover stays in the mortality pool.
Questions
How much does a $100k annuity pay?
Near $583 a month at 7%: rate times premium over twelve.
Immediate or deferred?
Immediate pays within a year; deferred grows first and pays later, larger.
What is a payout rate?
Annual income over premium: 7% pays $7,000 per $100,000 yearly.
Are payments inflation safe?
No, unless riders add cost. Fixed checks lose power yearly.
What if I die early?
Payments usually stop without period certain or refund riders.
Surrender charges?
Early exits cost percent penalties on set schedules: read the contract.