Technology has made it possible for investors to use online calculators to determine the amount of investment needed for specific returns at the end of a particular period of time. The calculator is easy to use and offers an estimate with only a few inputs required on your part.

What is an immediate annuity?
An immediate annuity may be purchased when you make a lump sum payment. The annuity starts a month after you make the lump sum payment. They are basically contracts that help you save and then generate income out of the savings. The amount you save and invest will determine the amount of annuity you receive. If you wish to receive a larger amount in the form of an annuity, you will have to invest a larger sum for it.

How does it work?
An annuity is a payment you receive for the rest of your life. You may choose to set it up for a specific number of years and your beneficiaries then receive the same if you do not survive the years. In other words, it is like setting up a single lifetime income that you receive from the amount you invest. You need to determine the amount you wish to receive every month, quarter, or year, and make an investment accordingly. In order to determine the amount that you need to invest, you may use an immediate or retirement annuity calculator.

What is an immediate annuity calculator?
This calculator will allow you to calculate the regular income you will receive from the investment you make. Alternatively, it will let you calculate the investment you need to make to receive a specific amount of income.

How does the immediate annuity calculator work?
When using an immediate annuity calculator, you will have to enter details about your gender, age, the area of residence, and the start date of income. Decide whether you want the calculation for yourself or for you and your spouse. You may either choose to calculate the amount of return you may have from the investment or the amount you need to invest for specific returns.

The calculator will give you a perfect estimate of the amount you will receive as returns, based on which you will be able to make a decision. If you want a higher amount of annuity every month, you need to make a higher amount of investment and if you want to adjust the amount of investment, you will have to alter the annuity you wish to receive in the long term.