Using the Kapitalwise Annuity Calculator
Enter your premium amount, current age, the age you want payments to start, and your payout option. The calculator shows your estimated monthly income.
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Annuity Calculator.
An annuity calculator estimates the monthly income a lump-sum premium could generate, based on your age, when payments begin, and the payout option you choose.
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Updated
August 31, 2026
Your Details
Your annuity contract
$
The lump sum you use to purchase the annuity.
Your age today.
When you want payments to begin.
Payout Option
Determines how long payments last, and how large each payment is.
Assumptions
Rates used
%
The rate the insurer credits during the payout phase.
%
Applies only while payments are deferred.
Live Result
Your estimated income
Estimated Monthly Income
$5,006
An immediate single life annuity starting at age 65.
Annual income
$60,075
Paid each year in retirement
Total paid out
$1,501,871
Over 25 years of payments
Result summary
- Premium paid
- $1,000,000
- Annuity type
- Immediate
- Payout option
- Single life
- Value when payments begin
- $1,000,000
- Expected payment period
- 25 years
- Monthly income
- $5,006 / mo
- Interest earned over contract
- $501,871
Estimates are hypothetical and for illustration only. Actual annuity quotes vary by insurer, product, and current interest rates.
Contract Value Over Time
These results are estimates, not predictions. They're calculated from the figures you entered and assume your rate of return and inflation rate hold steady every year, which real markets don't do. Change any input and the result changes. Use this to compare scenarios, not to plan around a specific number.
Premium Amount
Premium amount is the lump sum you use to purchase the annuity.
Current Age
Current age is used along with your payout start age to determine how long your premium has to grow before payments begin.
Payout Start Age
Payout start age is when you want to begin receiving payments. An immediate annuity begins paying within the first year of purchase. A deferred annuity begins paying at a later date you choose.
Payout Option
Payout option determines how long payments last. A single life annuity pays for your lifetime only. A joint life annuity continues paying a spouse or beneficiary after you pass away. A period certain annuity pays for a fixed number of years.
Spouse's Age
Spouse's age applies if you choose a joint life payout option, since it affects the length of expected payments.
Example Payouts
These are hypothetical examples for illustration. A $1 million premium purchased at age 65, paid out immediately as a single life annuity, could generate approximately $5,000 per month. A $2 million premium under the same terms could generate approximately $10,000 per month.
What an Annuity Is and How Payouts Work
An annuity is a contract with an insurance company. You pay a premium, either as a lump sum or a series of payments, and the insurer pays you income later, for a set number of years or for the rest of your life.
Annuities have two phases: accumulation, when you're paying into the contract, and distribution, when the insurer pays you back.
How much an annuity pays depends on four factors: your premium amount, your age when payments begin, the interest rate the annuity earns, and the payout option you choose.
Payout options affect both how long payments last and how large each payment is. A single life annuity pays only for your lifetime and typically pays the most per month. A joint life annuity continues paying a spouse after you pass away, which lowers the monthly amount. A period certain annuity pays for a fixed number of years regardless of how long you live.
Annuities can also be immediate, with payments starting within a year of purchase, or deferred, with payments starting at a later date you choose. Deferring payments generally increases the eventual payout, since the insurer has more time to grow your premium before paying it out.
The Next Step
Next Steps
An annuity is one option for turning savings into guaranteed income, but it isn't the right fit for everyone. A fiduciary financial advisor can help you weigh an annuity against your other retirement income sources. Matching with an advisor is free and comes with no pressure to commit.
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