Lump Sum vs. Annuity Payment Calculator

Our lump sum vs. annuity payment calculator compares two payment options: receiving a lump sum today, investing it yourself, and living off the proceeds after paying income taxes; or receiving an annuity for a specific number of years and paying taxes each year. The calculator discounts the annuity to a present value so that you can compare which option is the better deal. Generally, the option with a higher present value is the better deal. The savings interest rate that you designate is used to calculate present value for the annuity payment option and is compounded monthly. The decision between cash up front and payments over time mostly depends on the interest rate that you can earn on money that you save and the difference between the lump sum amount and the annuity amount.

Next Steps

Fifth Third can help you reach your savings goals. Learn more about our savings accounts. Questions? Visit a branch, contact a financial advisor, or give us a call at 1-877-579-5353.

Additional Resources

Retirement Financial Risks: Are Annuities Right for You?

When analyzing the top retirement financial risks, consider how to avoid running out of assets. Read about the benefits of annuities with Fifth Third Bank.

Variable Rate and Fixed Income Annuities

Variable rate and fixed income annuities from Fifth Third Bank can help fulfill your long-term financial goals.

How to Manage Multiple Retirement Assets

Knowing how to manage retirement assets will help you develop a retirement strategy. From managing investments to retirement incomes, here's what to know.