Retirement & Annuities Tools · 2026
Annuity Break-Even Calculator
Enter a premium and guaranteed monthly income amount to see how many years it takes to recover the premium — generic math, not a recommendation or an illustration of any specific product.
This is a hypothetical illustration for education only — not investment, tax, or financial advice, and not a guarantee of future performance. Any guarantees referenced are backed solely by the claims-paying ability of the issuing insurance company, not by any government agency or Hougom Insurance Agency.
Questions, answered
What does break-even mean for an annuity?
It's simply the point where the cumulative guaranteed income you've received equals the premium you paid. This calculator shows that point in years (and, if you enter a start age, an approximate age) — it doesn't judge whether an annuity is a good fit for you.
Is this a quote or a product illustration?
No. This is generic break-even math using the premium and guaranteed monthly income figures you enter. It is not an illustration of any specific annuity product, and it doesn't include fees, riders, surrender charges, or how a specific contract actually works.
What happens to my money after break-even?
That depends entirely on the specific annuity contract — some continue paying guaranteed income for life, others may have a defined period. This calculator doesn't model your specific contract; ask your carrier or agent for a personalized illustration.
Are annuity guarantees backed by the government?
No. Annuity guarantees are backed solely by the claims-paying ability of the issuing insurance company, not by the FDIC or any government agency.
Want a real illustration for a specific contract?
A local licensed advisor can walk through actual annuity quotes, riders, and fees for your situation — free, no pressure. Also see our RMD Calculator and Social Security Break-Even Calculator.