Immediate Annuity Calculator
Calculate payments, investment amounts, and returns for immediate annuities (SPIA)
Calculate Immediate Annuity
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Annuity Specifications
Your initial lump sum investment
Duration of withdrawal period
Annual interest rate or return
Amount to remain after withdrawal period
Immediate Annuity Results
Number of Withdrawals: 120
Final Balance: $0.00
Periodic Rate: 0.1250%
Payment Timing: Beginning of Period
Payment Schedule (First 12 Periods)
| Period | Payment | Interest Earned | Remaining Balance |
|---|---|---|---|
| 1 | $896.79 | $125.00 | $99,228.21 |
| 2 | $896.79 | $124.04 | $98,455.45 |
| 3 | $896.79 | $123.07 | $97,681.72 |
| 4 | $896.79 | $122.10 | $96,907.03 |
| 5 | $896.79 | $121.13 | $96,131.37 |
| 6 | $896.79 | $120.16 | $95,354.74 |
| 7 | $896.79 | $119.19 | $94,577.14 |
| 8 | $896.79 | $118.22 | $93,798.57 |
| 9 | $896.79 | $117.25 | $93,019.02 |
| 10 | $896.79 | $116.27 | $92,238.50 |
| 11 | $896.79 | $115.30 | $91,457.01 |
| 12 | $896.79 | $114.32 | $90,674.53 |
| ... and 108 more payments | |||
Example Calculation
Retirement Income Example
Scenario: $100,000 immediate annuity for retirement income
Investment Amount: $100,000
Withdrawal Period: 10 years
Annual Return: 1.5%
Payment Frequency: Monthly at beginning of period
Result
Monthly Payment: $897
Total Withdrawals: $107,615
Total Return: $7,615 over 10 years
Immediate Annuity Payout Options
Life with Period Certain
Lifetime payments with guaranteed period
Systematic Withdrawals
Fixed amount for specific term
Joint-Life
Payments to spouse after death
Lump-Sum
One-time payment option
Key Benefits
Guaranteed income stream
Immediate payments start
Protection against market volatility
Predictable retirement income
Understanding Immediate Annuities
What is an Immediate Annuity?
An immediate annuity, also known as a Single Premium Immediate Annuity (SPIA), is a financial product where you make a lump-sum payment to an insurance company in exchange for guaranteed periodic payments that begin immediately or within one year.
When to Consider
- •At or near retirement
- •Need guaranteed income
- •Want protection from market volatility
- •Complement other retirement income
Payment Calculation Formula
Payment Amount (PMT):
PMT = (PV - FV/(1+r)ⁿ) × r / (1 - (1+r)⁻ⁿ)
- PV: Present value (lump sum investment)
- FV: Future value (remaining balance)
- r: Periodic interest rate
- n: Number of payment periods
Note: For annuity due, divide PMT by (1 + r)