Income Annuity Calculator

The Income Annuity Calculator helps users estimate the future value of their investment, regular payout amounts, total expected payouts, and total return on investment based on their initial investment, age, expected return rate, and other parameters.

Use Our Income Annuity Calculator

Step-by-Step Guide to Using the Income Annuity Calculator

This guide will walk you through each step of using the Income Annuity Calculator to estimate your future payouts and returns. Please follow each step carefully and ensure all required information is entered correctly.

Step 1: Enter Your Initial Investment

  • Locate the field labeled Initial Investment ($).
  • Enter the amount you wish to invest. This must be a number between $1,000 and $10,000,000.

Step 2: Provide Your Current Age

  • Find the field labeled Current Age.
  • Enter your current age. Ensure this is a number between 18 and 100.

Step 3: Choose the Age to Start Payouts

  • Identify the field labeled Age to Start Payouts.
  • Enter the age you plan to begin receiving payouts. This should be a number within the range of 18 to 100.

Step 4: Select the Annuity Type

  • Locate the dropdown menu labeled Annuity Type.
  • Select your preferred annuity type from the two options:
    • Fixed Annuity
    • Variable Annuity

Step 5: Define the Payout Frequency

  • Find the dropdown labeled Payout Frequency.
  • Choose how often you wish to receive payouts:
    • Monthly – 12 times a year
    • Quarterly – 4 times a year
    • Annually – Once a year

Step 6: Specify the Expected Annual Return Rate

  • Locate the field labeled Expected Annual Return Rate (%).
  • Enter your anticipated annual return rate as a percentage between 0.1% and 12%, in increments of 0.1%.

Step 7: Provide Your Life Expectancy Age

  • Find the field labeled Life Expectancy Age.
  • Enter your expected life expectancy age, which should be a number ranging from 50 to 120.

Review and Calculate

  • Double-check all the information you have entered for accuracy.
  • Once you have ensured all fields are completed and correct, proceed to calculate your results.

Upon completion, the calculator will provide you with results including the Deferral Period, Payout Period, Future Value at Payout Start, Regular Payout Amount, Total Expected Payouts, and Total Return on Investment. Each result is formatted to offer easy interpretation of your financial outlook.