Annuity Calculator 2026
Calculate monthly income from a lump sum annuity, or find how much you need to fund a target monthly income in retirement.
Types of Annuities
Immediate annuity: You pay a lump sum and income starts within 12 months. Best for retirees who need income now. Rates are competitive when interest rates are high.
Fixed deferred annuity: Like a CD inside an insurance wrapper. Your money grows at a guaranteed rate during the accumulation phase, then you can convert to income or withdraw. Offers principal protection.
Variable annuity: Your principal is invested in sub-accounts (like mutual funds). Growth is not guaranteed — you can earn more or lose money. Usually comes with high fees and surrender charges.
Fixed indexed annuity (FIA): Growth is linked to a market index (like the S&P 500) with a floor (you can't lose principal) and a cap (limits your upside). Balances protection and growth potential.
Annuity vs Investing the Same Money
The key annuity advantage: longevity insurance. If you live to 95, an annuity keeps paying — a personal portfolio might be depleted. The disadvantage: if you die early, the insurance company keeps the remainder (unless you choose a period-certain or return-of-premium rider).