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Annuity Calculator

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An immediate annuity is the opposite of a lifetime of saving: one lump sum today is exchanged for a monthly income that stops only at death. The payment depends mostly on two things — how old you are when the income starts and how long that age is expected to live — so the same premium buys very different income at 60 than at 75.

Immediate Annuity Calculator - Danfio

https://danfio.com/tools/annuity-calculator/ - printed from this page

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The age the income starts. The same lump sum buys more a month at older ages, because the payments are expected over a shorter window.

Used for the SSA period life table, which splits mortality this way. Longer expected survival means a smaller factor, so the same premium buys a little less a month.

$

The single premium - money handed to the insurer today in exchange for the income stream. It funds every payment.

How many years the income keeps flowing no matter what, to the annuitant or their estate. Longer guarantees stretch the payback years and shave the monthly amount.

The annual rate the insurer’s money backing the annuity is assumed to earn. Lower yields make the income smaller, because the same lump sum must fund more years.

Results update as you type. Nothing leaves your device.

Currency symbol

Symbol only - nothing is converted and no exchange rate is used. Figures quoted in the explanation text stay as the sources publish them.

A $200,000 lump sum buys about

$1,203

$14,436 a year for life from age 65, on the SSA period life table

The income, the guarantee, and the payback

Annual income
$14,436 level for life
Monthly income
$1,203 twelve payments a year
Guaranteed period
0 income stops at death
Years to recoup the premium
13.9 the annuity factor
Expected lifetime payments
$261,572 at SSA life expectancy

Every payment year

YearAgeIncome that yearCumulative income
165$14,435.57$14,435.57
266$14,435.57$28,871.14
367$14,435.57$43,306.71
468$14,435.57$57,742.28
569$14,435.57$72,177.85
670$14,435.57$86,613.42
771$14,435.57$101,048.99
872$14,435.57$115,484.56
973$14,435.57$129,920.13
1074$14,435.57$144,355.70
1175$14,435.57$158,791.27
1276$14,435.57$173,226.84
1377$14,435.57$187,662.41
1478$14,435.57$202,097.98
1579$14,435.57$216,533.55
1680$14,435.57$230,969.12
1781$14,435.57$245,404.69
1882$14,435.57$259,840.26
1983$14,435.57$274,275.83
2084$14,435.57$288,711.40
2185$14,435.57$303,146.97
2286$14,435.57$317,582.54
2387$14,435.57$332,018.11
2488$14,435.57$346,453.68
2589$14,435.57$360,889.25
2690$14,435.57$375,324.82
2791$14,435.57$389,760.39
2892$14,435.57$404,195.96
2993$14,435.57$418,631.53
3094$14,435.57$433,067.10
3195$14,435.57$447,502.67
3296$14,435.57$461,938.24
3397$14,435.57$476,373.81
3498$14,435.57$490,809.38
3599$14,435.57$505,244.95
36100$14,435.57$519,680.52
37101$14,435.57$534,116.09
38102$14,435.57$548,551.66
39103$14,435.57$562,987.23
40104$14,435.57$577,422.80
41105$14,435.57$591,858.37
42106$14,435.57$606,293.94
43107$14,435.57$620,729.51
44108$14,435.57$635,165.08
45109$14,435.57$649,600.65
46110$14,435.57$664,036.22
47111$14,435.57$678,471.79
48112$14,435.57$692,907.36
49113$14,435.57$707,342.93
50114$14,435.57$721,778.50
51115$14,435.57$736,214.07
52116$14,435.57$750,649.64
53117$14,435.57$765,085.21
54118$14,435.57$779,520.78
55119$14,435.57$793,956.35

Each row is $14,436 for life, however long that turns out to be. The survivor-weighted factor (13.9) is roughly the number of level years that repay the lump sum.

With no guarantee the income stops at death, early or late. If the annuitant dies quickly, the insurer keeps the remainder; if they live past life expectancy, the insurer pays for the extra years. That cross-subsidy is what makes the income level for life.
The assumed yield of 3% and the SSA survivors column feed the factor, so the income is a planning figure from those assumptions, not the insurer's quote - its own portfolio, expenses and pricing may land elsewhere. Taxes on the gain inside the income, inflation and any cost-of-living adjustments are not modelled.

This page prices that exchange with the SSA period life table and an assumed yield for the insurer, and shows what a lump sum buys at any start age. The yield is your input, because an annuity quote is the insurer’s own portfolio answer and nobody on a calculator page can promise it; the honest version shows the assumption clearly instead of burying it.

About this immediate annuity calculator

Buying income for life is two decisions at once: how much to hand over, and how long the payments must last. The annuity calculator prices the income an immediate annuity buys from a lump sum at any start age, using the SSA period life table, an assumed yield and an optional period-certain guarantee.

The method is printed in full on the page, and the headline answer is recomputable from the numbers printed there. The site sells no data and moves no leads for any insurer or broker; there is no funnel and no reason for the answer to lean one way.

A real annuity quote comes only from an insurer or a licensed agent, and it will differ from this page’s answer because it reflects that carrier’s own assumptions. Nothing here is financial, insurance or tax advice.

How this immediate annuity calculator works

A lump sum is turned into an income

Everything on the page comes from one number, the annuity factor. It is built by walking forward from your age to the end of the SSA table at 119, taking the chance of being alive in each of those years and discounting that year back at the assumed yield. The premium divided by the factor is the annual income; a twelfth of it is the monthly payment. A higher assumed yield lifts the payment, and a longer life expectancy lowers it, because the same pot has to fund more years.

The factor doubles as the payback line. It is the present value of one dollar a year for life, so it is also the number of level years whose payments add up to the premium - which is why the page prints it as years to recoup. On the defaults, $200,000 at 65 for a male at a 3% yield buys $14,435.57 a year, or about $1,203 a month, against a factor of 13.9.

Every payment year is weighted by survival

The survival weights come from the SSA period life table for the sex you select, divided by the chance of being alive at your starting age so that the first year always counts as 1. That normalization is what lets one factor be compared across ages. A female annuitant of the same age typically receives less each month - on the same $200,000 at 65 that is $13,054.56 a year, or $1,088 a month, with a factor of 15.3 - because a longer expected life means the premium must stretch further.

Two different numbers on the page are worth telling apart. The year-by-year table is a schedule of possible payments: every year from your age to 119 is listed at the full amount, whatever the survival odds, so its final cumulative total is not an expected value. The expected lifetime payments line is the separate estimate, and it multiplies the annual income by SSA life expectancy rather than summing the weighted column.

A period-certain guarantee changes the payback

A life-only annuity stops at death, whenever that is; a period-certain rider owes the income for a minimum number of years, to you and then to your estate. Inside the guaranteed window the page treats survival as certain, so those years enter the factor at full weight, the factor lengthens and the monthly amount shrinks. At 65 for a male, a ten-year guarantee trims the payment from $1,203 to $1,145 a month - $13,741.51 a year - and pushes the factor from 13.9 to 14.6.

The guarantee note splits the payback into the firm guaranteed years plus the lived years that remain, which is a presentational split rather than an actuarial one. One behavior to know: the guarantee is rounded to whole years and capped at 40, but the factor never runs past age 119. Pick a guarantee that outlasts the table - 40 years from age 100, say - and the arithmetic simply stops at 119 with no separate warning that the promise and the price have parted company.

The assumed yield is not the insurer’s quote

A real annuity quote reflects the insurer portfolio, its expenses and its own mortality basis, and a calculator knows none of them. So the yield is an input here, the field allows 0% to 15%, and the page states plainly that a real quote will land somewhere else. That is a planning figure from stated assumptions, and the method, the life table and the yield are all printed so the headline can be recomputed by hand.

Several features of real contracts are outside the model: the exclusion ratio that decides how much of each payment is taxable, inflation and cost-of-living riders, joint and survivor annuities, and any cash refund at death beyond the guarantee. Each of them changes what a contract actually pays. What is priced here is the plain level-for-life exchange, which is the cleanest way to see what a lump sum buys before riders start reshaping it.

Worked examples

Each example below was run through the calculator on this page when the site was built, so the numbers match what you see when you enter the same inputs.

The defaults: $200,000 at age 65, male

Your age now: 65 years · Sex: Male · Lump sum to convert: $200,000.00 · Guaranteed period: 0 years · Assumed yield: 3 %

A $200,000 lump sum buys about

$1,203

$14,436 a year for life from age 65, on the SSA period life table

Annual income: $14,436 · Monthly income: $1,203 · Guaranteed period: 0 · Years to recoup the premium: 13.9

At the default start age and yield the lump sum buys the monthly figure in the headline, paid for life, printed beside the years-to-recoup line. The assumption of 3% is shown on the page, not hidden.

The same premium, a female annuitant of the same age

Your age now: 65 years · Sex: Female · Lump sum to convert: $200,000.00 · Guaranteed period: 0 years · Assumed yield: 3 %

A $200,000 lump sum buys about

$1,088

$13,055 a year for life from age 65, on the SSA period life table

Annual income: $13,055 · Monthly income: $1,088 · Guaranteed period: 0 · Years to recoup the premium: 15.3

A female annuitant of the same age has a longer life expectancy, so the same pot must fund more years: the monthly payment steps down, and the page says why rather than printing a mystery discount.

Starting the income at 70 instead of 65

Your age now: 70 years · Sex: Male · Lump sum to convert: $200,000.00 · Guaranteed period: 0 years · Assumed yield: 3 %

A $200,000 lump sum buys about

$1,406

$16,877 a year for life from age 70, on the SSA period life table

Annual income: $16,877 · Monthly income: $1,406 · Guaranteed period: 0 · Years to recoup the premium: 11.9

Waiting five years shortens the expected payout window and adds five years of yield on the premium, so the same lump sum buys a noticeably larger income. That trade — smaller income for longer, or larger income for shorter — is what the page is for.

A ten-year period-certain guarantee

Your age now: 65 years · Sex: Male · Lump sum to convert: $200,000.00 · Guaranteed period: 10 years · Assumed yield: 3 %

A $200,000 lump sum buys about

$1,145

$13,742 a year for life from age 65, on the SSA period life table

Annual income: $13,742 · Monthly income: $1,145 · Guaranteed period: 10 · Years to recoup the premium: 14.6

Guaranteeing at least ten years of payments clips the monthly income and buys the household a floor: the payment now continues to a beneficiary even if death comes early. The page prints both the reduced income and the floor, side by side.

Frequently asked questions

What exactly is an immediate annuity?

A contract that exchanges one lump sum now for a stream of income that starts right away (within a year) and continues for life — or for a fixed period. It is the direct inverse of a savings plan: instead of feeding the pot for decades to get an income, you hand over the pot and get the income. The monthly payment depends mostly on the start age and the assumed yield.

Why do women get smaller payments than men of the same age?

Because the contract is priced on life expectancy: a longer-lived annuitant must be paid for more years from the same premium, so each payment is smaller. The page uses the SSA period life table and the sex you select, and prints the difference rather than hiding it. A couple can also price a joint contract, which trades an even lower payment for a guarantee that lasts the longer of the two lives.

Is the income fixed, or can it grow?

A plain immediate annuity pays a level income for life; inflation riders pay more in later years and cost less income at the start. This page prices the level version and leaves growth to riders, because the level payment is the cleanest way to see what the money buys. The trade between a higher starting income and one that keeps up with prices is a choice for the buyer, not a number to guess.

What happens to the premium if I die soon after?

With a life-only annuity, the payments stop at death and the remaining premium is gone — that is the mortality risk pooling that funds the larger payments for everyone else. A period-certain guarantee keeps paying for a minimum number of years to a beneficiary. The ten-year-guarantee example shows the exact price of that floor, in dollars per month.

Why does the page use an assumed yield instead of a real quote?

Because the real quote is the insurer’s answer: it reflects that carrier’s portfolio, expenses and mortality assumptions, and a calculator cannot see any of those. If the assumed yield differs from the insurer’s, the payment moves in the direction the page shows. The assumption is printed on the page, so nobody reading it can mistake a model for a quote.

Assumptions and sources

  • The income is the premium divided by an annuity factor built from the SSA period life table for the sex you select and the assumed yield you enter — the standard actuarial shape for a life-only income.
  • A period-certain guarantee is priced by extending the payout for the guaranteed years regardless of survival, which lowers the monthly payment; both shapes are printed so the trade is visible.
  • Real annuity quotes reflect the insurer’s own portfolio, expenses and mortality assumptions, which a calculator cannot know; the yield here is an input and the page says plainly that a real quote will differ.
  • This is pricing arithmetic, not an offer of an annuity and not financial advice; tax treatment of the income is not modelled, and the payment is a level income before any inflation rider.

Last reviewed 2026-10-06. Not investment or insurance advice; quotes come from a licensed provider. Read the full disclaimer.

Where a figure on this page comes from an official agency — HUD, IRS, FICO or a state body — the site keeps a dated snapshot of the source page in its sources library, and a scheduled job re-checks that snapshot, so the number can be traced back to the document it came from.

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