Overview
What Is a Lump Sum vs Annuity Calculator?
This tool compares the present value of a series of annuity payments against a lump sum option, helping evaluate which has greater value given a discount rate.
Compare a lump sum payout to annuity payments.
This tool compares the present value of a series of annuity payments against a lump sum option, helping evaluate which has greater value given a discount rate.
Useful for evaluating lump sum vs periodic payment options common in lottery winnings, pensions, and settlements.
Input the immediate lump sum option.
Input the periodic payment amount and duration.
Input your assumed rate for comparison.
See which option has greater present value.
Using the present value annuity formula, discounting each future payment back to today's value at your chosen discount rate.
This is subjective - often your expected investment return rate, though personal risk tolerance and alternatives should factor in too.
No, this is a pre-tax comparison - actual tax treatment often differs between lump sum and annuity options and should be considered separately.
Not necessarily - it depends on your discount rate assumption, tax situation, and personal financial discipline.
No, calculations happen entirely in your browser.
Various reasons including immediate access to funds, investment control, and sometimes more favorable tax treatment depending on jurisdiction.
Yes, for personal pension decisions, expected lifespan affects the total value you'd receive from an annuity option.
Yes, this type of comparison is common when evaluating structured settlement lump sum buyout offers.
No, this is an estimation tool - consult a financial advisor for major payout decisions.
Yes, completely free with no sign-up required.