Finance Calculators

Immediate Annuity Calculator

Calculate the fixed monthly income a lump sum can generate over a chosen payout period, similar to how an immediate annuity works.

Monthly income —

Total payout over term —

About the Immediate Annuity Calculator

An immediate annuity converts a single lump sum into a guaranteed stream of periodic income, drawing down both principal and investment earnings evenly until the balance reaches zero at the end of the payout period.

Formula: PMT = PV × r ÷ [1 − (1+r)^-n], where PV is the lump sum, r is the monthly rate of return, and n is the number of monthly payments.

Unlike a savings withdrawal that could run out early if returns disappoint, a true insurance-backed immediate annuity guarantees the income regardless of investment performance — this calculator shows the underlying math without that insurance guarantee.