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Immediate Annuity Calculator

Immediate Annuity Calculator is used to estimate the regular payouts for immediate annuities

All processing happens on the client-side, locally in your browser. No data is uploaded.

The total amount to invest
The annual interest rate
The total number of years
Frequency of payments every year
Immediate Annuity Payment
43.87

History

  • 2018-05-18Tool Launched

Background

What is Annuity?
An annuity is a fixed sum of money that is paid to someone every year, generally for the rest of their life.
What is Immediate Annuity?
Immediate annuities are long-term, tax-adjourned contracts generally purchased from any insurance company. It provides immediate regular payments in exchange for an investment that was done in a lump-sum manner. These payments last for life or a specified period. Start taking your income as soon as possible through it.
Formula

P = [A x i] / [1 - (1 + i) -nt]

Where;

  • P = periodic payment of an immediate annuity
  • A = amount of money invest in immediate annuity
  • i = annual interest rate (annual rate of return for the immediate annuity)
  • t = number of years you expect to live and receive payments
  • n = frequency of payments every year
Example
If you invest $50,000 at an 8 percent annual rate of interest, intending to receive payments for 10 years, you'll receive a yearly payment of [50,000 x .08] / [1 - (1 + .08) ^ -10] = $7451.47.