Annuity Payout Calculator
An annuity payout is the premium — or a benefit base derived from it — multiplied by a payout percentage the carrier sets based on the age income begins and whether payments continue over one life or two. This free calculator applies generic illustrative assumptions to show how those three inputs move the resulting monthly figure. It is educational only and does not quote any specific product.
- Illustrative annual
- $15,781 / yr
- Payout percentage used
- 5.30%
- Illustrative base at start
- $297,754
- If income started now
- $1,029 / mo
Illustrative estimate only — not a quote, projection, or guarantee. Payout percentages are set by the issuing carrier and vary by contract, state, and age. This does not evaluate any annuity you currently own.
How the payout percentage moves with age
The single largest driver of an annuity payout is the age at which income begins. The carrier is pricing an expected payment period, so a later start means a shorter expected period and a higher annual percentage. The table below shows the illustrative single-life rates used by this calculator.
| Income start age | Illustrative single life | Illustrative joint life |
|---|---|---|
| 55 | 4.2% | 3.7% |
| 60 | 4.7% | 4.1% |
| 65 | 5.3% | 4.7% |
| 70 | 6.0% | 5.3% |
| 75 | 6.9% | 6.1% |
| 80 | 8.0% | 7.0% |
- Single-life payout percentages interpolated between the illustrative points shown above; joint life shown at 88% of single life.
- Deferral applies a 6% illustrative annual roll-up to the base the payout percentage is applied to. Not every contract offers a roll-up, and a roll-up base is generally not a withdrawable amount.
- No inflation, tax, fee, or rider-charge adjustments are applied.
- Figures are generic and educational; individual results vary and no outcome is guaranteed.
Related reading: guaranteed lifetime withdrawal benefit, benefit base, and deferred vs. immediate annuities.
Frequently asked questions
- How is an annuity payout calculated?
- A payout is generally the premium (or a benefit base derived from it) multiplied by a payout percentage set by the carrier. That percentage rises with the age at which income begins and is lower when income must continue over two lives. Deferring the start date typically increases the percentage and, in contracts with a roll-up, the base it is applied to.
- Does waiting to start income increase an annuity payout?
- Usually yes, for two reasons. The payout percentage itself rises with age, and many deferred contracts credit a roll-up to the benefit base during the waiting period. The trade-off is that you receive nothing during those years, so a later, larger payment is not automatically the better outcome.
- Why is a joint-life annuity payout lower?
- A joint-life payout is expected to continue over two lifetimes rather than one, so the carrier spreads the same premium across a longer expected payment period. The reduction is commonly in the range of ten to fifteen percent versus a single-life payout at the same age.
- Is this calculator a quote for a specific annuity?
- No. It applies generic, clearly stated illustrative assumptions and does not reference any carrier, product, index, cap, or crediting rate. Actual payout rates are set by the issuing carrier at the time of purchase and vary by contract, state, and age.
- Does this evaluate an annuity I already own?
- No. This tool illustrates a payout figure from a premium you enter. If you already own a contract and want to know where it stands, the free Annuity Position Score reviews cost, surrender status, riders, crediting terms, and suitability across five pillars.
Already own an annuity? See where yours stands.
A free Annuity Position Score takes about three minutes. Educational only — not a recommendation to buy, sell, surrender, or replace any annuity.