An annuity turns a lump sum into steady income. Estimate the monthly payment a sum could produce over a fixed period — or flip it to find the lump sum needed for the income you want.
An annuity trades a lump sum for a stream of payments. You give an insurer money, and they pay you back on a schedule — for a set number of years, or for life. The appeal is certainty: a paycheck you can count on regardless of what markets do. This calculator estimates the fixed-term case, showing the steady monthly amount a sum can support, or the sum required for a target payment.
Guaranteed income comes at a cost. Annuities often carry fees, can be complex, and lock up money you can't easily get back. Once you annuitize, that lump sum is generally gone as a flexible asset. For some, the certainty is worth it — especially as protection against outliving savings. For others, the fees and lost flexibility outweigh the benefit. Many people annuitize only a portion of their savings, covering essential expenses while keeping the rest invested and accessible.
A fixed-term annuity pays for a defined stretch — say 20 or 25 years. A lifetime annuity pays as long as you live, which means you can't outlive it, but payments typically stop at death unless you add a survivor benefit or guarantee period. Lifetime versions transfer longevity risk to the insurer, which is their core value. This calculator models the simpler fixed-term math; real lifetime quotes depend heavily on your age and current interest rates.