Life Expectancy Annuity Calculator
A life annuity pays a regular amount for the rest of your life, so its value depends heavily on how long you are expected to live. This calculator approximates a life annuity as a level stream of payments over your remaining life expectancy, discounted to a present value at a rate you choose. It returns the present value and the undiscounted total payout, useful for retirement planning and comparing an annuity to a lump sum.
Annuity present-value formula
i = discount rate / 100
If i > 0: present value = payment * (1 - (1 + i)^-n) / i
If i = 0: present value = payment * n
Total payout = payment * n
where n = remaining life expectancy in years
This is the ordinary (immediate) annuity present-value identity applied over the expected number of payment years. It treats every expected year as certain rather than weighting by survival probability.
Reading the result
- Present value is what the future payments are worth in today's money at your chosen rate.
- Total payout is the simple sum of all payments, with no discounting.
- A higher discount rate lowers the present value.
- A longer life expectancy raises both figures.
Life annuity value: frequently asked questions
How does life expectancy drive an annuity value?
A life annuity pays until death, so the longer your expected remaining lifespan, the more payments you are likely to receive and the higher the present value of those payments. This calculator approximates a life annuity as a level series of payments over your remaining life expectancy, discounted to today.
What discount rate should I use?
The discount rate reflects the time value of money, often based on a long-term interest rate or the insurer's assumed return. A higher rate lowers the present value because future payments are worth less today. Enter the rate that matches your assumptions; it is a user-editable input here.
Where do I find my life expectancy?
The U.S. Social Security Administration and the U.S. Centers for Disease Control and Prevention publish life tables that estimate remaining years of life by age and sex. Look up your figure and enter the remaining years; this keeps the calculation grounded in an official source rather than a guess.
Is this the same as an insurer's annuity quote?
No. Insurers price life annuities using full mortality tables, expense loadings, and survivorship probabilities for every future year, not a single life-expectancy figure. This calculator is an approximation for planning; use an insurer's quote for a binding price.
Official sources
- The present value is the standard ordinary-annuity identity. Life expectancy figures should be taken from an official life table; all inputs are user-editable.
- U.S. Social Security Administration: Actuarial Life Table.
- U.S. Centers for Disease Control and Prevention: National Vital Statistics life tables.
Reviewed by the CalculatorHub team, edited by James Graham, 19 June 2026. See our methodology.