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Annuity Payout Calculator
Compare a lump sum against an annuity's guaranteed payments, with payout period and rate.
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An annuity trades a lump sum for a guaranteed monthly paycheck. This compares that paycheck against just investing the same lump sum yourself and withdrawing the same amount — set your lump sum and payout rate to see which one wins, and when.Monthly payment
$1,289
Total payout
$386,581
over 25 years
Breakeven vs alternative
year 25
when the annuity's cumulative payout overtakes self-investing
The annuity comes out ahead by $0 over the full 25-year payout, overtaking self-investing in year 25.
Annuity, cumulative receivedSelf-invested, total value
View as table
| Year | Annuity cumulative | Self-invested balance | Self-invested total value |
|---|---|---|---|
| 0 | $0 | $200,000 | $200,000 |
| 5 | $77,316 | $179,864 | $257,180 |
| 10 | $154,632 | $152,704 | $307,336 |
| 15 | $231,949 | $116,069 | $348,017 |
| 20 | $309,265 | $66,654 | $375,918 |
| 25 | $386,581 | $0 | $386,581 |
Methodology & assumptions
- The monthly payment is computed with the standard fixed-period amortization formula from your premium and payout rate — real annuity pricing also reflects insurer fees, mortality credits, and (for life annuities) your life expectancy.
- A lifetime annuity is approximated as a fixed 25-year payout period; your actual life expectancy could be shorter or longer, which materially changes the real-world value of a life annuity versus this model.
- The self-invested alternative assumes a constant annual return with no volatility, withdraws the exact same monthly amount the annuity would have paid, and ignores taxes on withdrawals or investment gains.
- 'Breakeven' compares cumulative cash received from the annuity against total value delivered by the alternative (withdrawals taken so far plus the balance still invested) — it is not a guarantee either strategy performs this way in real markets.
- No surrender charges, riders, inflation adjustment, or insurer default risk are modeled for the annuity.
Educational only
This simulator is for education. It uses simplified assumptions, is not financial, tax, or investment advice, and no result here is a prediction or a recommendation. Talk to a licensed professional before acting.More retirement & compounding tools
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