Annuity Payout Calculator | WikiBudget

Annuity Payout Calculator

Estimate guaranteed retirement income from immediate or deferred annuities and compare it to CD ladders and bonds with clear after-tax income.

Tax-Aware Live Rates Lifetime Income Annuity vs CD Ladder

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Your Annuity Details

$
Total amount you will invest in the annuity.
Non-Qualified funds allow for a portion of the payment to be tax-free.
For Non-Qualified term-certain annuities, this period is used to calculate the tax-free portion.
%
Typical SPIA rates in 2025: ~6–8% for ages 65–75 (varies by carrier).
We factor in state income tax using WikiBudget’s 2025 tax dataset.

Understanding Annuities

What is an Immediate Annuity (SPIA)?

You give an insurance company a lump sum, and they pay you a guaranteed paycheck for life (or a fixed period). It’s one of the highest, safest income streams available.

Key Advantages

  • High payout: Often beats CDs and bonds thanks to mortality credits.
  • Lifetime income: You can’t outlive the guaranteed paycheck if you choose a life option.
  • Market protection: Payments are not tied to daily market swings.

When to Consider an Annuity

  • You want a “retirement paycheck” to cover essential expenses.
  • You worry about outliving your portfolio and want longevity protection.
  • You prefer simplicity over managing a bond or CD ladder yourself.

Trade-offs

  • Little to no liquidity once you purchase (principal is typically not accessible).
  • Payments may lose purchasing power over time without an inflation rider.
  • Payments are usually taxed as ordinary income (unless funded with Roth money).