## About This Tool

The online Immediate Annuity Calculator is used to estimate the regular payouts for immediate annuities.

## Immediate Annuity definition

An immediate annuity is an annuity providing payment to begin immediately, or within a short period after purchase. You use an immediate annuity when you want to start taking income as soon as possible.

## Formula

The immediate annuity calculation formula is as following:

where

P = periodic payment of an immediate annuity

A = amount of money invest in immediate annuity

r = annual interest rate (annual rate of return for the immediate annuity)

t = number of years you expect to live and receive payments

n = frequency of payments every year