Annuity Calculator
An annuity calculator helps you calculate annuity payments, income streams, and payout options for retirement planning. Use our free annuity calculator to understand different payment structures, compare annuity options, and plan your retirement income effectively. This tool accounts for principal amount, interest rates, payment frequency, and time horizon to provide comprehensive annuity analysis. Calculate your annuity payments instantly to make informed retirement income decisions.
Free • Income planning • Payment options
How Annuity Calculation Works
Annuity Payment Formula
Payment = P × [r(1+r)^n] / [(1+r)^n - 1]
P = Principal (initial investment)
r = Periodic interest rate
n = Number of payment periods
Total Payout: Payment × Number of periods
Example Annuity Payment Calculation
A $100,000 annuity at 5% interest for 20 years provides $658 monthly payments. Total payout over 20 years would be $157,920, with $57,920 in interest earnings.
This creates a steady retirement income stream while preserving and growing your principal.
Benefits of Annuity Planning
Frequently Asked Questions
How much annuity income can I get?
Annuity income depends on age, gender, amount, and interest rates. Typically $100,000 provides $400-600 monthly at age 65.
Are annuities a good investment?
Annuities provide guaranteed income but have lower returns than stocks. Good for risk-averse retirees seeking steady income.
What are annuity payment options?
Options include life-only (highest payment), joint life, period certain (guaranteed minimum period), and life with cash refund.
Related Retirement Calculators
Calculate Your Annuity Income
Get comprehensive annuity payment analysis with different options and schedules for retirement planning.
Use Annuity Calculator