Annuity Payout Calculator

Fixed-period and deferred calculations use standard time-value-of-money annuity algebra: solving the standard present-value annuity formula for the periodic payment. For periodic rate r and total periods n, the annuity factor is (1 - (1+r)^-n)/r; payment = PV / annuity_factor, with an extra discount for deferred starts.

Life-estimate and joint-life results are approximations. Life-estimate uses a user-supplied life expectancy (years) to set the number of periods; it does not use mortality tables or insurer-blended survival probabilities. Joint-life uses a user-entered survivor multiplier to crudely reflect reduced payments for survivor benefits.

Variable-annuity estimates are heuristic: they multiply purchase amount by net expected return (expected return less fees) to provide a first-year income projection. This is not a guarantee and ignores sequence-of-returns risk and volatility.

Use fixed-period methods to model a guaranteed-term payout. Use deferred for payments that begin later. Use life-estimate only if you supply a credible life expectancy or if you want a rough rule-of-thumb. For joint-life and variable annuity scenarios, seek formal insurer quotes for contractual guarantees.

This calculator provides estimates only. Real insurer quotes incorporate mortality tables, underwriting, crediting rates, fees, profit margins and regulatory constraints that are not modeled here.

Example 1: $100,000 purchase, 3% assumed interest, monthly payouts for 10 years. The tool computes periodic payments using the monthly periodic rate (3%/12) and n = 120 payments.

Example 2: Deferred annuity with 5-year deferral and 20-year payout: payments are larger than a straight 20-year immediate annuity because the payment stream is discounted back through the deferral period.

Example 3: Variable-annuity estimate with 5% expected return and 1% fees gives a net expected return of 4%; first-year income estimate = 4% × purchase amount.