Where do these numbers come from?
- Instant answersResults update as you type.
- Private by designRuns in your browser. Nothing is sent.
- Share, print or citeCopy a link with your numbers.
Monthly payout from $100,000
| Rate | 10 years | 15 years | 20 years | 25 years | 30 years |
|---|---|---|---|---|---|
| 3% | $966 | $691 | $555 | $474 | $422 |
| 4% | $1,012 | $740 | $606 | $528 | $477 |
| 5% | $1,061 | $791 | $660 | $585 | $537 |
| 6% | $1,110 | $844 | $716 | $644 | $600 |
| 7% | $1,161 | $899 | $775 | $707 | $665 |
Worked example
r = 5% ÷ 12 = 0.004167, n = 240. Payout = $100,000 × 0.004167 ÷ (1 − 1.004167−240) = $659.96. Total received: $158,389.
Lifetime annuities are priced differently
A lifetime (single premium immediate) annuity pays until death, so the insurer prices it on your age, sex and life expectancy. Those quotes cannot be derived from a formula; ask several insurers. A period-certain payout, shown here, ends after the chosen years, with any remaining payments going to a beneficiary.
Sources and assumptions
- Ordinary annuity formula, monthly compounding.
Related
Frequently asked questions
How much does a $100,000 annuity pay per month?
About $659.96 for 20 years at 5%, as a fixed-period payout.
Does an annuity pay for life?
Only a lifetime annuity does. Period-certain payouts stop after the chosen number of years.