Immediate Annuity Calculator

Estimate only

Quick ballpark estimate of lifetime income from a single-premium immediate annuity (SPIA). Actual quotes vary by carrier, rate date, and state.

Calibrate (global adjustment)

Applies a global +/- % to estimated payouts after all options. Use when the market heats up or cools down. Example: enter 1.0 for +1%.

Premium ($)

Minimum $5,000. Try $100,000 for easy math.

Gender

Age

Move the slider or type an age.

Annuity Type

Guarantee Period

Longer guarantees typically reduce income.

Payment Frequency

State (optional)

Some states impact availability/pricing. We won’t adjust for state here.

Assumptions & Methodology

Baseline payout factors are annual income per $1 of premium, by age and gender, with Life Only as the base. Values are linearly interpolated between anchor ages.

Period certain adjustment: 10-year certain = ~2% reduction; 20-year certain = ~2.5% reduction applied multiplicatively to the base factor.

Joint life adjustment: 6–12% reduction depending on average age of both lives. Survivor percentage scales that reduction (100% = full reduction; 75% ≈ 0.85x; 50% ≈ 0.70x).

Calibration: Global adjustment you can set between -10% and +10% to reflect market conditions. This is applied after all other adjustments.

Anchor factors (annual per $1 premium):

Male: 50=0.053, 55=0.057, 60=0.062, 62=0.065, 65=0.073, 67=0.076, 70=0.082, 72=0.087, 75=0.096, 80=0.115, 85=0.142, 90=0.180
Female: 50=0.051, 55=0.054, 60=0.059, 62=0.062, 65=0.067, 67=0.070, 70=0.076, 72=0.081, 75=0.090, 80=0.108, 85=0.134, 90=0.170

These are mid-market approximations for educational purposes. For binding quotes, request a live illustration.

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Disclaimer: This content is for informational and educational purposes only. It does not constitute financial, tax, or legal advice. Annuity products vary by state and carrier. Always consult a licensed financial professional before making any financial decisions. My Annuity Store is an independent marketplace and does not provide investment advice.

Pros and Cons of Fixed Annuities

Before you commit to a fixed annuity, weigh the advantages and drawbacks for your retirement situation.

✓ Pros

✓ Guaranteed rate locked in for the full term — no surprises
✓ Principal is 100% protected from market losses
✓ Often pays significantly more than CDs or savings accounts
✓ Tax-deferred growth — no annual tax bill until withdrawal
✓ Up to 10% annual free withdrawal without surrender charge
✓ State guaranty association coverage (typically up to $250,000)
✓ Simple to understand — no moving parts or index tracking

✗ Cons

✗ Surrender charges apply if you withdraw more than 10% early
✗ Not FDIC insured — backed by the insurance company, not the government
✗ Earnings taxed as ordinary income (not capital gains rates)
✗ 10% IRS early-withdrawal penalty before age 59½
✗ Rate is fixed — you won't benefit if market rates rise
✗ Less liquidity than a savings account or money market

Types of Annuities

Insurance companies offer several types of annuities to fit different financial goals. Here's how they compare.

A MYGA (Multi-Year Guaranteed Annuity) is the simplest fixed annuity. Your rate is guaranteed for the entire term — 3, 5, or 7 years. No market exposure, no index tracking. What you see is what you earn.

Best for: Savers who want a predictable, guaranteed return and are comfortable locking funds for a set term. Often compared to CDs but frequently pays more.

Learn more about MYGAs →

A Fixed Indexed Annuity (FIA) links your interest credits to a market index (like the S&P 500) with a floor of 0% — so you can never lose principal. Upside is capped via participation rates or caps.

Best for: Investors who want some market participation with a safety net. More complex than MYGAs but potentially higher returns in strong market years.

Learn more about FIAs →

A SPIA (Single Premium Immediate Annuity) converts a lump sum into a guaranteed income stream — monthly checks that start within 30 days and continue for life or a set period.

Best for: Retirees who need guaranteed income immediately and want to eliminate the risk of outliving their money. The "pension replacement" product.

Learn more about SPIAs →

A Variable Annuity invests your premium in sub-accounts (similar to mutual funds). Returns fluctuate with the market — you can earn more but can also lose principal.

Best for: Long-term investors who want market exposure inside a tax-deferred wrapper and are comfortable with investment risk. Higher fees than fixed products.

Learn more about variable annuities →

A RILA (Registered Index-Linked Annuity) offers partial market participation with a defined buffer against losses (e.g., 10% or 20%). Unlike FIAs, RILAs can lose money — but losses are limited.

Best for: Investors willing to accept limited downside in exchange for higher upside potential than a traditional FIA. A middle ground between fixed and variable.

Learn more about RILAs →

Rate Methodology

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Immediate Annuity Calculator