Annuity Calculator
Estimate annual and monthly income from a pension pot and an annuity rate.
Estimated annual income
£12,500.00
- Monthly income
- £1,041.67
Uses the annuity rate you enter. Rates vary by provider and personal circumstances; no current market rate is assumed.
v1.0 · Reviewed September 2026
How this is worked out
Annual income is the pot × the annuity rate you enter, divided by 12 for the monthly figure.
Worked example
- Pot £250,000
- Annuity rate 5%
250,000 × 5%
£12,500.00 a year, about £1,041.67 a month
Assumptions and limits
- Uses the rate you supply. No market rate is assumed, and real quotes vary by age, health, and whether the annuity is joint life, inflation linked or has a guarantee period.
- Income shown is before tax. Annuity income is taxable as earned income.
- Assumes the whole pot buys the annuity, with no tax-free cash taken first.