Free Tool · income annuities

Annuity break-even calculator

An income annuity turns a lump sum into a paycheck for life. This tool estimates the break-even point — how long the payments take to return your premium — so you can weigh the trade-off. Guarantees rely on the claims-paying ability of the issuing insurer.

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You recover your premium at about
age —

Simplified estimate: premium ÷ monthly payment. Does not reflect interest credited, riders, taxes, inflation, or death-benefit provisions. Guarantees depend on the issuing insurance company's claims-paying ability. Hypothetical — not investment advice.

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Questions, answered

What is an annuity break-even point?

It's how long it takes for the income payments from an income annuity to add up to the premium you paid. After the break-even point, continued payments are money beyond your original principal — which is why lifetime income annuities favor a longer life.

Does an annuity guarantee my returns?

No annuity guarantees investment returns. Income annuities provide guaranteed payments backed by the claims-paying ability of the issuing insurance company. This tool shows a simplified break-even on payments only; it does not reflect interest, riders, taxes, or inflation.

How do I know if an annuity fits me?

It depends on your goals, other income, health, and how it coordinates with Social Security and long-term care. We compare options plainly with no pressure. Product availability and rates vary by company and state.

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Educational only — not financial, tax, or legal advice. Annuity guarantees are subject to the claims-paying ability of the issuing company.