Annuity vs Lump Sum Calculator

When offered a pension payout, a lump sum gives all money upfront to invest, while an annuity provides guaranteed lifetime income. Use this calculator for accurate, instant results.

The calculator uses the standard published formula for annuity vs lump. Results are accurate to the precision of the inputs you provide. For financial, medical, or legal decisions, always verify with a qualified professional.

This calculator works with inches, watts. You can enter values in the units shown — the calculator handles all conversions internally.

The core formula is: Annuity PV = Annual payment x [(1 - (1+r)^(-n)) / r]. Each step in the calculation is shown so you can verify the result manually.