Annuity Rates 2026 Calculator
Estimate the periodic income a lump sum could generate under 2026 annuity rates. Free, instant calculator that shows your payout, total income, and interest earned over the term.
Calculate Your Annuity Payout
Enter your principal amount, annuity rate, and term below to see an instant estimate of your periodic income, total payout, and interest earned.
Annuity Details
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Payout Estimate
Calculated annuity income breakdown
2026 Annuity Rate Ranges
Illustrative annual rate ranges by annuity type. Actual rates vary by provider, age, term, and health factors — use this as a starting point, not a quote.
| Annuity Type | Typical Term | Illustrative Rate Range | Payout Style |
|---|---|---|---|
| Immediate Fixed | Lifetime / 10–25 yrs | 4.5% – 6.5% | Fixed |
| Deferred Fixed | 5–15 yrs deferral | 4.0% – 6.0% | Fixed |
| Multi-Year Guaranteed | 3–10 yrs | 4.2% – 5.8% | Fixed |
| Variable Annuity | Lifetime / 10–30 yrs | Market-linked | Variable |
| Indexed Annuity | Lifetime / 5–20 yrs | 3.5% – 7.0% (capped) | Semi-Variable |
| Joint-Life Annuity | Lifetime (2 lives) | 3.8% – 5.5% | Fixed |
Annuity Rate FAQ
Everything you need to know about how annuity rates work and what shapes them in 2026.
An annuity rate is the percentage used to convert a lump sum of money into a stream of periodic income payments. It reflects prevailing interest rates, the payout term, and the provider’s own assumptions, so it varies from provider to provider and changes over time.
A payout annuity converts a principal amount into equal periodic payments using the annuity rate and number of periods. The general formula is Payment = P × r / (1 − (1 + r)^-n), where P is the principal, r is the rate per period, and n is the total number of periods.
Annuity rates are influenced by prevailing bond yields and central bank interest rates, the annuitant’s age and life expectancy assumptions, the payout term chosen, and whether the annuity is fixed, variable, immediate, or deferred. Rates differ between providers and change regularly.
A fixed annuity rate locks in a set payout for the agreed term, offering predictable income. A variable annuity rate is tied to the performance of underlying investments, so payouts can rise or fall over time depending on market conditions.