Use the free Annuity Payout calculator at SafeMoney.com to plan your retirement income, model Social Security timing, and explore safe money strategies. No login required.
Direct answer: This calculator estimates the monthly income a lump sum could produce over a fixed payout period. For example, $250,000 at 5% paid out over 20 years produces roughly $1,650/month. If you add a deferral period, the lump sum first grows with annual compound interest before payments begin. Actual annuity payouts depend on the carrier's current rates, your age, and the payout option you choose.
The monthly payment is computed with a standard amortization approach — the same concept used for level loan payments — so the balance, still earning interest, is fully paid out over the years you select. The rate you enter is applied as a constant annual rate for both deferral and payout phases. Results model a period-certain payout (a fixed number of years), not a lifetime income guarantee based on actuarial life expectancy. No fees, riders, taxes, or inflation adjustments are modeled.
Results are illustrative estimates for education and comparison — not an insurance quote, a guarantee of income, or a product recommendation. For how annuities are regulated and what to ask before buying, see the NAIC's consumer overview of annuities. To compare payout options with a licensed professional, start with the SafeMoney.com Annuities guide.
Find a licensed SafeMoney advisor who can walk you through your numbers and build a personalized guaranteed income plan.