Life Contingent Annuity Calculator

Calculator Inputs

Current Age

Term Years

Use 0 for a whole life style projection.

Annual Payment

Interest Rate (%)

Payment Frequency

Payment Timing

Deferment Years

Escalation Rate (%)

Maximum Age

Mortality Model

Constant q (%)

Mortality Improvement (%)

Makeham A

Gompertz B

Gompertz C

Currency Code

Example Data Table

Use these sample inputs to test the calculator before entering your own annuity assumptions.

Case	Age	Term	Annual Payment	Rate	Frequency	Mortality Basis
Retirement Income	60	25 years	18,000	4.25%	Monthly	Constant q = 1.40%
Deferred Benefit	48	20 years	9,600	5.00%	Quarterly	Gompertz Makeham
Growing Pension	55	0 whole life	14,400	3.75%	Annual	Constant q = 1.10%

Formula Used

Expected present value

EPV = Σ [ Payment_t × S(t) × v^t ]

v^t = (1 + i)^-t

S(t) = probability of surviving from issue age to time t

For growing annuities, Payment_t = Base Payment ÷ Frequency × (1 + g)^k

Constant mortality uses a fixed annual death probability. Gompertz Makeham uses a force of mortality with age growth. The calculator converts both into survival probabilities, then discounts each expected payment back to today.

The annuity factor equals the discounted survival weighted stream per unit payment. It helps compare structures with different growth, deferment, and timing assumptions.

How to Use This Calculator

Enter the annuitant’s current age and choose a fixed term or whole life projection.
Set the annual payment, interest rate, payment frequency, and timing.
Add deferment years if payments begin later and set an escalation rate for annual increases.
Choose a mortality basis. Use constant q for simple testing or Gompertz Makeham for age sensitive estimates.
Press Calculate Annuity to show the result above the form.
Download the schedule with CSV or PDF buttons when you need a shareable output.

Frequently Asked Questions

What is a life contingent annuity?

It is an annuity where payments depend on survival. Payments may stop at death, continue for a term, or begin after a deferment period.

What does the annuity factor show?

The annuity factor measures the discounted survival weighted value of one unit of payment. Multiply it by the payment amount to estimate present value.

When should I use immediate or due timing?

Use immediate when payments occur at period end. Use due when payments occur at period start, such as rent style or pension advance structures.

Why include a mortality model?

Mortality assumptions change survival probabilities. Higher mortality lowers expected payments and present value, while improvement assumptions can increase long term value.

What does deferment do?

Deferment delays the first payment. This reduces present value because payments start later and survival must hold through the waiting period.

Can I model payment growth?

Yes. The escalation rate increases payments once each year. This helps test inflation linked pensions or benefits with planned annual step ups.

Are the results suitable for formal valuation?

They are useful for estimation and scenario testing. Formal actuarial work may require full mortality tables, expense loads, selection effects, and regulatory assumptions.