How to use the immediate annuity calculator
- Enter your amount and age. Type the lump sum you plan to convert and your current age, or use the sliders. Older buyers receive higher monthly payments because the income is spread over fewer expected years.
- Choose who the income covers. Pick “Just me” or “Me + spouse” for joint life, then choose a payout option. Life only pays the most. 10- or 20-year certain and installment refund trade a lower monthly amount for beneficiary protection.
- Read the result. The calculator shows an estimate based on the highest qualifying quote in our dataset, plus the yearly total. Treat it as a planning figure, then request personalized quotes for current carrier numbers.
What does a $100,000 immediate annuity pay?
A $100,000 SPIA bought by a 65-year-old man pays about $701 a month for life, or $8,415 a year. That is the top quote from A- or better carriers as of October 2026.
- Woman, 65: about $672 a month, a little less because she is expected to live longer.
- Couple, both 65 (joint life): about $622 a month, paid until the second spouse dies.
- Man, 75: about $895 a month, because the income is spread over fewer expected years.
See every age in our immediate annuity rates by age, which list single and joint SPIA payouts per $100,000.
What is a single premium immediate annuity?
A single premium immediate annuity, or SPIA, is a contract you buy from an insurance company with a one-time lump sum. In exchange, the insurer guarantees you income that usually begins within 1 to 12 months. It continues for the rest of your life, or for both your life and your spouse’s if you choose a joint contract.
- Works like a private pension: predictable, contractual, and not tied to how the stock market performs.
- Your principal becomes the income: you no longer hold the lump sum, but the insurer is legally obligated to pay no matter how long you live.
- No medical exam: SPIAs are priced on age and gender, not health.
If you want to grow the money first and convert it to income later, our fixed annuity calculator and today’s fixed annuity rates are useful next steps.
How payout options affect monthly income
A life-only SPIA produces the highest monthly payment because the insurer’s obligation ends when you (or both joint annuitants) die. Most buyers add a feature that trades some income for added protection.
| Payout option | What it does | In this calculator |
|---|---|---|
| Life only | Pays for as long as you live, nothing to heirs | Yes |
| Life with period certain | Guarantees payments for a set term, then continues for life | 10 and 20 years |
| Life with installment refund | Continues payments to beneficiaries until total payments equal the premium | Yes |
| Life with cash refund | Pays beneficiaries any uncollected premium as one lump sum | Not modeled |
| Joint and survivor | Pays while either spouse lives, often at 50%, 75%, or 100% to the survivor | 100% only |
- Life with period certain: if you outlive the guaranteed term, payments keep coming for life. If you die during it, your beneficiaries collect the rest of that term.
- Refund options: protect heirs from the “buy the annuity, then pass away early” scenario. Installment and cash refund are priced differently, so ask for a quote on the one you want.
What determines your actual quote?
- Age: the biggest factor. Older buyers receive more per month because the insurer expects to pay for fewer years.
- Gender: women on average live longer, so their single-life quotes are usually a little lower.
- Interest rates: when rates are higher, insurers can promise more income. When they fall, payouts drift down.
- Options, carrier, and state: refund and period-certain features, the insurer’s pricing, and product availability where you live.
Because pricing changes with rates, real quotes are typically valid for only 7 to 14 days. The retirement income gap calculator and Social Security claiming calculator are good companions to this tool.
The trade-off
A SPIA can pay more than a bank account or bond ladder because the decision is, in most cases, irrevocable. You hand the insurer a lump sum and you cannot get it back as a lump sum later. In exchange you get income you cannot outlive.
The practical rule most people follow is to annuitize only the portion of savings needed for essential expenses, such as housing, food, and healthcare. Keep the rest liquid for emergencies, travel, and flexibility.
Example: how Carol would use the calculator
Carol is a hypothetical 65-year-old with $400,000 in savings and $2,400 a month from Social Security. Her essential bills run about $3,000 a month, so she wants to close a $600 gap with guaranteed income.
- What she models: a $100,000 premium at age 65. The top life-only quote for a 65-year-old woman is about $672 a month, roughly $8,068 a year.
- Protection for her children: she compares installment refund, which trims the payment slightly but pays any uncollected premium to her heirs.
- The result: her shortfall is covered, and the other $300,000 stays invested and liquid.
What inflation does to a fixed payment
A standard SPIA pays the same dollar amount every month for life, so inflation slowly erodes its buying power. You have two ways to respond.
- Add a COLA rider: a cost-of-living adjustment raises income over time but meaningfully lowers your starting payment. This calculator does not model COLA riders.
- Keep the higher fixed payment: offset inflation with a separate growth portfolio.
The SEC offers a plain-English overview of annuities if you want a neutral primer. When you are ready, run your own numbers in the immediate annuity calculator above.
Get personalized immediate annuity quotes
We compare SPIA payouts from 90+ top annuity companies for your age, state and payout option. No fee, no obligation.
Common questions
What is a single premium immediate annuity (SPIA)?
A SPIA is a contract you buy with one lump sum in exchange for guaranteed income that usually starts within a year and continues for life, or for both spouses’ lives on a joint contract. It functions like a personal pension and is not tied to market performance.
Can I outlive an immediate annuity?
No. A life-only or joint-life SPIA is designed to pay for as long as you live, no matter how long that is. That guaranteed lifetime income is the main reason retirees buy one, because it removes the risk of running out of money in old age.
What happens to my money if I die early?
It depends on the payout option. With a life-only contract, payments stop and nothing goes to heirs.
- Period certain: your beneficiaries receive the rest of the guaranteed term.
- Installment refund: payments continue to beneficiaries until the premium is paid back.
- Cash refund: the unpaid remainder goes to beneficiaries as a lump sum.
Each option lowers the monthly payment a little compared with life only.
Is an immediate annuity protected against inflation?
A standard SPIA pays a fixed amount, so inflation erodes its buying power over time. You can add a cost-of-living adjustment rider that increases payments each year, but it lowers your starting income. Many buyers instead keep the higher fixed payment and offset inflation with other investments.
How are immediate annuity payments taxed?
If you buy a SPIA with after-tax money, each payment is part return of your principal and part taxable interest. Only the interest portion is taxed, under the exclusion ratio described in IRS Publication 939.
If you fund it from a traditional IRA or 401(k), the full payment is generally taxable as ordinary income. A tax professional can confirm how the rules apply to your situation.
More tools: all annuity calculators · income rider calculator · MYGA calculator
