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Annuity Calculator

Calculate annuity payments and compare immediate vs deferred options

Annuity Details

Payments begin immediately after purchase

5%
2.5%
Monthly Payment

$3,300

Annual Income

$39,597

Total Payments

$791,947

Interest Earned

$291,947

58.4% of principal

Break-Even Point
Year 13(when payments exceed your investment)
Balance & Cumulative Payments
Payment Source Breakdown
Annual Payment Breakdown
Payment Schedule
YearPhasePaymentInterestBalance
1Payout$39,597$25,000$485,403
2Payout$39,597$24,270$470,075
3Payout$39,597$23,504$453,982
4Payout$39,597$22,699$437,084
5Payout$39,597$21,854$419,340
6Payout$39,597$20,967$400,710
7Payout$39,597$20,036$381,148
8Payout$39,597$19,057$360,608
9Payout$39,597$18,030$339,041
10Payout$39,597$16,952$316,396
11Payout$39,597$15,820$292,619
12Payout$39,597$14,631$267,652
13Payout$39,597$13,383$241,437
14Payout$39,597$12,072$213,912
15Payout$39,597$10,696$185,010
16Payout$39,597$9,251$154,663
17Payout$39,597$7,733$122,799
18Payout$39,597$6,140$89,342
19Payout$39,597$4,467$54,212
20Payout$39,597$2,711$17,325
Understanding Annuities

Immediate Annuity

Payments begin right away after you invest. Best for those who need income now, such as retirees looking for guaranteed income.

Deferred Annuity

Your money grows tax-deferred until you start withdrawals. Best for those planning ahead who want larger payments in the future.

Key Considerations

  • Annuities provide guaranteed income
  • Payments may not keep up with inflation
  • Early withdrawals may have penalties

Tax Treatment

A portion of each payment is a return of principal (tax-free) while the rest is interest (taxable as ordinary income).