Lump Sum vs Annuity Calculator
Decide between a one-time lump sum payment and a guaranteed annuity stream. Compare the total payout, investment potential of the lump sum, and break-even points to make the best choice for your retirement or pension.
Inputs
$
$
Use life expectancy if lifetime annuity
%
%
%
%
Annual withdrawal from invested lump sum
Results
Total Annuity Payments
$1,153,091
Lump Sum End Balance
$820,303
Break-Even Year
Year 13
Annuity Advantage
$512,485
Cumulative Income Comparison
Annual Income: Year 1
Year-by-Year Comparison
| Year | Annuity Payment | Cumulative Annuity | Lump Withdrawal | Lump Balance |
|---|---|---|---|---|
| 1 | $36,000.00 | $36,000.00 | $20,000.00 | $510,000.00 |
| 2 | $36,720.00 | $72,720.00 | $20,400.00 | $520,200.00 |
| 3 | $37,454.40 | $110,174.40 | $20,808.00 | $530,604.00 |
| 4 | $38,203.49 | $148,377.89 | $21,224.16 | $541,216.08 |
| 5 | $38,967.56 | $187,345.45 | $21,648.64 | $552,040.40 |
| 6 | $39,746.91 | $227,092.35 | $22,081.62 | $563,081.21 |
| 7 | $40,541.85 | $267,634.20 | $22,523.25 | $574,342.83 |
| 8 | $41,352.68 | $308,986.89 | $22,973.71 | $585,829.69 |
| 9 | $42,179.74 | $351,166.62 | $23,433.19 | $597,546.28 |
| 10 | $43,023.33 | $394,189.96 | $23,901.85 | $609,497.21 |
| 11 | $43,883.80 | $438,073.76 | $24,379.89 | $621,687.15 |
| 12 | $44,761.48 | $482,835.23 | $24,867.49 | $634,120.90 |
Frequently Asked Questions
Related Calculators
Annuity Calculator
Calculate annuity payments from a lump sum or how much to invest for desired payments.
Pension Calculator
Estimate your pension benefit based on years of service, salary, and benefit formula.
Retirement Income Calculator
Estimate how much monthly income your retirement savings can provide.