Annuity Calculator
Updated on 22 Oct 2026 · Checked by Aotob
$100,000 buys an income of about $7,200 a year for life.
$600 a month at a 7.2% rate, before tax.
Income a year
$7,200for life
A level annuity loses buying power to inflation: at 3% a year it buys about 40% less after 17 years.
Show the working
100,000 × 7.2% = 7,200
Income by pot
| Pot | A year | A month |
|---|---|---|
| 50,000 | 3,600 | 300 |
| 100,000 | 7,200 | 600 |
| 200,000 | 14,400 | 1,200 |
| 300,000 | 21,600 | 1,800 |
| 500,000 | 36,000 | 3,000 |
Questions people ask
How is annuity income worked out?
Pot × annuity rate. At 7.2%, $100,000 buys $7,200 a year for life. Rates depend on your age, health, interest rates and the options you choose.
Level or rising?
A level annuity pays the same every year. A rising one starts lower and goes up, usually by 3% or with inflation, protecting your buying power.
Can I get a better rate?
Yes, if you have health conditions or smoke: an enhanced annuity pays more. Shopping around rather than taking your provider’s offer also helps.
Updated 22 Oct 2026Source: Standard loan maths, checked October 2026Checked by AotobExample rates only: get real quotes before buying.Report an issue