The Income Annuity Calculator helps you see how a lump sum of savings could translate into a steady, predictable paycheck—often for life. If you’re trying to replace a pension, close a gap between retirement and Social Security, or simply build a “personal pension” that doesn’t depend on market performance, this tool is a great place to start. At Diversified Insurance Brokers, we’ve spent decades comparing annuities across 100+ top-rated carriers and building retirement income strategies that are designed to be simple, stable, and easy to understand. Use the calculator below to explore payout estimates, then we can help you compare real carrier offers and fine-tune the contract options that matter most for your goals.

If you’re still early in the learning process, it may help to review the broader fundamentals in our Annuities Hub. And if you’re weighing income annuities against “accumulation-first” strategies, you’ll also want to understand how bonus and fixed-rate annuities can fit into the same plan—sometimes as a bridge strategy before you turn income on.

The calculator below models guaranteed income scenarios based on the inputs you choose. It’s designed to help you explore tradeoffs—like starting income now versus deferring, choosing single-life versus joint-life income, and adding beneficiary protection features that may reduce the initial payout but increase certainty for your family.

What This Income Annuity Calculator Helps You Understand

Income annuities aren’t one-size-fits-all. Your payout changes based on your age, the income start date, the type of guarantee you choose, and whether the income covers one lifetime or two. This calculator helps you preview how those decisions can change monthly cash flow. It can also illustrate why some retirees prefer to “stage” income—using a fixed-rate annuity first, then converting part of the portfolio into lifetime income later when payouts may be higher.

In general, the biggest drivers of guaranteed income are (1) the age when you begin payments, (2) whether the income is single-life or joint-life, (3) whether you add a period-certain or refund feature, and (4) how long you defer income before turning it on. If you want a framework for comparing your income options, our guide to lifetime income annuity options explains the most common payout structures and why they matter.

Income Annuities in Real Retirement Planning

Many people discover income annuities when they realize how difficult it is to replicate a pension with investments alone—especially during volatile markets or when sequence-of-returns risk becomes a concern. A guaranteed paycheck can make retirement feel simpler: essential expenses are covered by predictable income sources, while the rest of the portfolio can remain flexible for growth, liquidity, or legacy goals.

This is also why income annuities are frequently paired with other annuity types. Some retirees want stable growth and principal protection before they commit to a lifetime payout, which is where fixed-rate options can be useful. Others want to boost the starting value used in a future income plan, which is why bonus annuities are sometimes explored (depending on goals and time horizon). If you want to compare “income now” versus “accumulate first, income later,” it helps to review both current fixed annuity rates and current bonus annuity rates side-by-side.

Key Design Choices That Change Your Monthly Payout

Most retirees are surprised by how much the “options” matter. A life-only payout typically produces the highest monthly income, but it may end at death with no remaining value for beneficiaries. Adding a period-certain guarantee can ensure payments continue for a minimum number of years even if you pass away early, which can be important if you want your plan to protect a spouse or children. A cash-refund option can also provide a backstop so your beneficiaries receive any unpaid premium amount if death occurs early—useful for people who want lifetime income but still want a legacy safeguard.

If beneficiary protection is important to you, you may also want to read our overview of annuity beneficiary death benefits, because income choices and beneficiary outcomes are closely connected. And if you’re planning around two lifetimes, joint income design becomes central—our guide to joint lifetime income for spouses explains how survivor percentages can reshape both income and long-term security.

“Start Now” vs. “Defer”: Why Timing Changes Everything

One of the most useful things this calculator can show is the impact of deferring income. When you delay the start date, you’re generally asking the insurer to pay over a shorter expected window—which can increase the monthly payout when income begins. This is why some people create a retirement “income ladder,” where different income streams start at different ages (for example, one begins at 65, another at 70, another at 75). Deferral can be especially powerful when you’re coordinating Social Security timing, pension elections, or required minimum distributions.

If you’re specifically coordinating retirement accounts and distribution timing, you may also want to explore the broader retirement-income planning side of annuities through our lifetime income planning page, which covers how different income tools can work together rather than competing with each other.

Example Scenarios You Can Model with the Calculator

Scenario 1: Immediate income at retirement. A 67-year-old allocates a portion of savings and starts payments within the next 30–60 days. The calculator helps compare a life-only payout against options like period-certain or refund protection, so you can see how beneficiary guarantees affect monthly income.

Scenario 2: Deferring income for a larger future paycheck. A 60-year-old plans to begin income at 67. The calculator can display how a deferred start date can increase the projected payment, and it can help you test multiple start ages to see where the “best fit” falls for your plan.

Scenario 3: Joint lifetime income for a couple. A couple chooses a joint-and-survivor option so payments continue for as long as either spouse is alive. The calculator can illustrate how a 100% survivor option compares to 75% or 50% survivor choices, balancing higher initial income versus stronger survivor protection.

Practical Tips for Getting Better Insights from the Calculator

Start by focusing on your “must-pay” expenses—housing, utilities, groceries, insurance, and healthcare. Then test a premium amount that could realistically cover some or all of those expenses as guaranteed income. After that, test different start dates and compare single-life versus joint-life options. Finally, add a beneficiary feature (period certain or refund) and observe how the monthly number changes, so you understand what you’re “buying” with that tradeoff.

If your goal is to preserve flexibility, it may also be worth comparing income annuities against strategies that keep more liquidity—such as building a fixed-rate ladder first, then turning on income later. If you’re evaluating liquidity tradeoffs inside annuities more broadly, our resource on annuity free withdrawal rules is a helpful companion read, since different annuity designs handle access very differently.

How Diversified Insurance Brokers Helps After You Run the Calculator

Calculator estimates are a starting point—not the finish line. After you run scenarios, we help you verify what the market is actually offering by shopping real carrier rates and producing compliant illustrations that match your chosen options. We also help you avoid common pitfalls like comparing “life-only” quotes to “refund” quotes (which can make payouts look better than they really are), overlooking spousal continuation needs, or selecting a start date that conflicts with the rest of your retirement-income plan.

Our process is simple: we identify what you want the income to accomplish, show you multiple carrier outcomes for the same design, and then help you choose the best fit with clarity. If you want to go deeper into strategy, you can also explore planning ideas on our Annuities 101 basics guide to understand how income annuities fit alongside fixed and indexed options.