Immediate Annuities Calculator
Hand an insurer a lump sum and it hands you a paycheck for life: that is a single premium immediate annuity, or SPIA. The monthly amount depends on your age, gender, and the payout option you choose, and quotes vary enough between carriers that a ballpark first saves real money. This immediate annuities calculator estimates your monthly income from any premium, adjusts for life-only, period-certain, and joint options, and shows the break-even math.
These are illustrative payout factors drawn from published 2026 market ranges, not carrier quotes: always compare live quotes before buying. For a faster quote-style estimate, see our instant annuity calculator; to compare annuity income against portfolio withdrawals, our annuity income calculator runs the other direction.
Illustrative estimates from 2026 market payout ranges, not carrier quotes. Actual quotes vary by carrier, state, and interest rates; compare live quotes before buying.
Quick Answer
A 65-year-old man putting $100,000 into a single premium immediate annuity gets about $645/month ($7,740/year) for life: a 7.74% payout rate. He breaks even at about 12.9 years (age 78); living to average life expectancy (~84) means roughly $147,060 in total payments.
- Quick Answer
- The short version
- Worked example, run through the real tool
- Why the payment beats a bond: mortality credits
- Payout options compared
- What $100,000 buys at each age (life only)
- Annuity payout vs the 4% rule
- What competing calculators miss
- Frequently asked questions
- Add This Calculator to Your Website
- References
The short version
- Age is the biggest lever: every five years you wait raises the monthly payment roughly 10-15%, because the insurer expects fewer payments.
- Options cost income: a 10-year certain guarantee trims about 4%; covering a spouse for life trims roughly 15%.
- The payout rate is not a return: part of every check is your own principal coming back. The 7.74% above includes principal repayment.
- Quotes vary ~15-20% between carriers for the same contract: compare same-day quotes from multiple A-rated insurers.
Worked example, run through the real tool
Pre-filled values: $100,000 premium, age 65, male, life only.
Step 1: table payout for a 65-year-old man = $645/month per $100,000. Step 2: monthly income = $100,000 / $100,000 x $645 = $645.00. Step 3: annual = $645 x 12 = $7,740; payout rate = 7,740 / 100,000 = 7.74%. Step 4: break-even = 100,000 / 7,740 = 12.9 years (age 78). Step 5: 19 years to life expectancy x $7,740 = $147,060 lifetime. Press Calculate to reproduce every figure.
Switch to joint (100% to survivor) with a 65-year-old spouse: the joint table gives $545/month per $100,000, so income falls to $545/month, a 6.54% payout rate. That ~15% haircut buys lifetime income for two people instead of one.
Why the payment beats a bond: mortality credits
A SPIA’s income comes from three sources, not one. The insurer earns interest on its conservative bond portfolio. Part of every check is principal repayment: your own money coming back. And the unique piece is mortality credits: money from annuitants who die earlier than expected subsidizes those who live longer.
Mortality credits are why a 7.74% payout rate exists in a world of 4-5% bond yields. They are also why the payment is highest for the oldest buyers and why life-only pays more than joint: the more longevity risk the insurer pools, the more credit flows to survivors. The trade-off is absolute: once the premium is handed over, it is converted into an income stream and is generally no longer available as a lump sum.
Payout options compared
Life only
Highest payment: $645/mo in the example. Payments stop at death, even if that is next year.
- Maximum monthly income
- No legacy value
- Best for longevity insurance
Life + 10-year certain
About $619/mo in the example (4% less). Pays at least 10 years to you or your heirs.
- Guaranteed minimum payout period
- Small income haircut
- Popular compromise choice
Joint, 100% to survivor
About $545/mo for a 65/65 couple (15% less). Pays until the second death.
- Protects the surviving spouse
- Largest income haircut
- Right default for most couples
There is no universally best option, only the one that matches the risk you are insuring. A single retiree with no bequest motive takes life only. Anyone with a financially dependent spouse takes joint. The period-certain middle exists for buyers who cannot stomach the thought of the insurer “winning” on an early death.
What $100,000 buys at each age (life only)
| Age | Male / month | Female / month | Joint 65-equiv / month |
|---|---|---|---|
| 60 | $585 | $565 | $500 |
| 65 | $645 | $620 | $545 |
| 70 | $740 | $705 | $600 |
| 75 | $870 | $820 | $680 |
Illustrative 2026 market ranges; the tool interpolates between ages. Women receive slightly less per month at the same age because of longer average life expectancy, and joint payouts run lower because they cover two lives. Actual carrier quotes move with bond yields daily.
Annuity payout vs the 4% rule
The 4% rule says a portfolio can sustain 4% inflation-adjusted withdrawals a year. A SPIA at 65 pays 7.74% nominal with no inflation adjustment and no remaining principal. The annuity wins on raw income and longevity insurance; the portfolio wins on liquidity, inflation protection, and legacy. Many retirees split the difference: annuitize enough to cover essential expenses, keep the rest invested. Our retirement income calculator totals both streams, and the IRA annuity calculator covers annuities held inside retirement accounts.
What competing calculators miss
The quote sites (immediateannuities.com, lifeannuities.us) give real carrier numbers but make you request quotes to see anything, and their published tables rarely explain the option trade-offs. Insurancegeek’s carrier survey is excellent on the spread between insurers but is a static snapshot. None of them puts the payout options, the break-even math, and the life-expectancy total in one interactive view.
This page does: age/gender-based payout factors with interpolation, all three major payout options with honest haircuts, break-even age, and lifetime totals at life expectancy. It will not replace a live quote, and it says so; it replaces the confusion that makes the first quote feel like a leap of faith.
Frequently asked questions
Roughly $645/month for a 65-year-old man and $620 for a 65-year-old woman on a life-only contract, based on 2026 market ranges. Older buyers get more: about $740 at 70 and $870 at 75 for men. Actual quotes vary by carrier, state, and daily rate changes.
You pay one lump sum to an insurer and it guarantees monthly payments starting within 12 months, for life or a chosen period. Income comes from interest, return of your principal, and mortality credits pooled across annuitants.
No. The payout rate (annual income divided by premium) includes return of your own principal, so it overstates the investment return. Your true return depends on how long you live: die early and it is negative; live long and it beats most bonds.
Within 12 months of purchase, typically one month after the contract is issued. Longer deferrals make it a deferred income annuity, a different product with higher payouts.
With life only, payments stop and the insurer keeps the balance: that is the mortality-credit bargain. With a period-certain option, payments continue to your heirs for the guaranteed years. With joint, they continue to your spouse for life.
Partly. Each payment is split between taxable interest and tax-free return of principal under the exclusion ratio. Once your principal is fully recovered, later payments are fully taxable. See IRS Publication 575 for the mechanics.
Generally no. The premium is converted into an income stream and is no longer available as a lump sum. Some contracts offer limited commutation riders at a cost. Never annuitize money you might need for emergencies.
Waiting raises the monthly payment about 10-15% per five years, but you collect nothing while you wait. If you need the income now, buy now; if not, waiting usually wins on lifetime total, provided interest rates cooperate. Buying in tranches over several years splits the difference.
Payments are backed by the insurer’s reserves and by state guaranty associations (coverage limits vary by state, often $250,000). Buy from highly rated carriers and stay within your state’s guaranty limit.
References
- National Association of Insurance Commissioners. "Annuities." NAIC: Annuities (Consumer Guide) (Accessed Oct 19, 2026).
- U.S. Securities and Exchange Commission, Investor.gov. "Annuities." Investor.gov: Annuities (Accessed Oct 19, 2026).
- Internal Revenue Service. "Publication 575, Pension and Annuity Income." IRS: Publication 575, Pension and Annuity Income (Accessed Oct 19, 2026).
- National Organization of Life and Health Insurance Guaranty Associations. "About Guaranty Associations." NOLHGA: About Guaranty Associations (Accessed Oct 19, 2026).
- Investopedia. "Single Premium Immediate Annuity (SPIA)." Investopedia: Single Premium Immediate Annuity (Accessed Oct 19, 2026).