Annuity Payout Calculator: SPIA vs DIA vs MYGA Monthly Income
Written & reviewed by Hans Goldstein, EA, independent licensed insurance producer · CA license 4273294 · NPN 20602398Admitted to practice before the IRS
SPIA payout data refreshed from a September 9, 2026 survey · Updated
TL;DR: Three different annuities pay you three very different monthly checks. SPIA (immediate) gives the highest current income but eats your principal. DIA (deferred) pays more later in exchange for waiting. MYGA gives the lowest monthly check but preserves principal. Enter age, deposit, and structure to see all three at once.
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How this calculator works
SPIA (Single Premium Immediate Annuity) uses life-contingent payout factors that depend on your age and sex. On September 9, 2026, a 65-year-old man averaged about 7.7% of premium a year for life-only and a 65-year-old woman about 7.3% (women live longer, so each dollar of premium has to last longer). Source: ImmediateAnnuities.com survey, $100,000 premium.
DIA (Deferred Income Annuity) is estimated here by applying the payout rate at your start age to premium grown at an assumed 7.5% a year during deferral. That growth rate is a modeling assumption, not a quote; real DIA pricing varies by insurer, so treat the DIA figure as a rough guide.
MYGA interest-only = principal × rate / 12. Always lower than SPIA because you're keeping the principal (which has to stay parked).
Joint & survivor is modeled about 14% lower (a rough estimate; two lives to insure). A 10-year period certain cost about 2% of the life-only payout at 65 and about 14% at 80 in the September 9, 2026 survey.
What the result means
SPIA is the biggest current monthly check, sometimes 30-60% more income per dollar than MYGA interest-only. The trade: at death (on life-only), the remaining principal stays with the carrier. Period-certain or joint riders soften this.
DIA is a future-paycheck commitment. You hand over money now in exchange for a guaranteed paycheck starting at a future age. Common use case: 60-year-old wants $4K/mo at age 75 to backstop long-term-care or extreme longevity. DIAs are often called "longevity insurance."
MYGA interest-only is the preserved-principal option. Lower monthly check but you keep full account access (subject to 10% free withdrawal limits), full death benefit, and full liquidity at end of term.
When MYGA wins / when the alternative wins
SPIA wins when: longevity risk is your #1 worry, no heirs to leave money to, and you want the maximum possible income now. Common ages: 70-80.
DIA wins when: currently in early 60s, healthy, want to lock in lifetime income for age 75-80+ without taking it now. Often paired with a MYGA bridge.
MYGA wins when: you have heirs you want to leave a residual to, you might need access to principal for emergencies, or you want the option to renew at higher rates later.
Worked example
Scenario: 68-year-old male, $250,000 to convert to income.
- SPIA (life-only, survey average): ~8.17% × $250K = $20,430/yr = $1,702/mo (best quote in the survey: about $1,815/mo)
- DIA deferred 5 yrs to age 73 (rough model): ~9.35% × $250K × (1.075)^5 = ~$33,600/yr = ~$2,800/mo starting in 5 yrs
- MYGA at 5.80% interest-only: $1,208/mo, principal preserved at $250K
SPIA gives him about 41% more monthly income than the MYGA right now, but his $250K is gone at death (life-only). Figures as of September 2026; see the notes above for sources.
The rough DIA model shows about 2.3 times the MYGA check from age 73, but nothing for the first 5 years. Get real DIA quotes before relying on it.
MYGA gives him the smallest monthly check but the most flexibility. He can renew at higher rates in 5 years or convert to SPIA then if needed.
Common mistakes
- Picking SPIA life-only without considering period-certain. Dying in year 2 of a life-only SPIA leaves heirs with nothing. A 10-year certain option cost only about 2 to 3% of monthly income at ages 65 to 68 in the September 9, 2026 survey, and protects against early death.
- Ignoring joint & survivor for married couples. Single-life payouts to one spouse leave the survivor with nothing. Joint income is lower (modeled here at about 14% less) but covers both lives.
- Buying DIA without enough deferral. Deferring 1-2 years adds little to the payout. The longevity-insurance benefit really kicks in at 5+ year deferrals.
- Confusing SPIA payout rate with interest rate. A "6% SPIA" is not a 6% return. Most of that 6% is principal coming back to you. Real internal rate of return is typically 2-4% depending on how long you live.
- Buying SPIA in a fast-rising rate environment. SPIA quotes lock at issue. Higher rates 6 months later = the SPIA you bought is overpriced. Sometimes worth waiting if rates are clearly trending up.
Related calculators & reviews
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- MYGA Monthly Income Calculator
- Social Security Bridge Calculator
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FAQ
Q: Why does sex affect the payout?
A: Women have ~3-year-longer life expectancy on average. Same premium, longer life = lower monthly payout per dollar. Some no-sex-distinction plans exist but are rare.
Q: What happens to a SPIA at death?
A: Life-only: payments stop, no death benefit. Period-certain: payments continue to beneficiary through end of period. Joint & survivor: payments continue to surviving spouse (full or reduced).
Q: Can I get inflation protection on a SPIA?
A: Some carriers offer COLA-adjusted SPIA (2-3% annual increase) but you start at a 20-30% lower payout. Most buyers skip COLA for the higher starting check.
Q: Are SPIA payments taxable?
A: Non-qualified SPIA payments are part return-of-principal (tax-free) and part interest (taxable). The exclusion ratio is fixed at issue. Qualified SPIA payments are 100% ordinary income.
Q: How is a DIA different from a deferred annuity with income rider?
A: DIA is annuitized at start. You lose access to principal forever. Deferred annuity with rider keeps principal accessible during deferral; income starts when you elect. DIAs usually pay more per dollar.
Q: Can I cash out a SPIA?
A: Most life-only SPIAs are irrevocable. Some carriers offer a commutation feature on period-certain payments for a discount. Always confirm before signing.
Q: Why do MYGA interest-only payments look so small?
A: Because you're keeping the principal intact. SPIA and DIA pay more because they're also returning principal to you each month. Not better or worse. Different products.
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Disclosure
This calculator is for educational and illustrative purposes only and is not a personalized recommendation, solicitation, or offer of any specific product. Outputs are approximations using publicly available rates, IRS tables, and standard payout factors as of 2026; actual carrier illustrations may differ. Annuity rates, caps, payout factors, surrender schedules, and tax brackets change frequently. Always confirm current values against the most recent carrier disclosure document, IRS Publication 590-B, and the actual contract before purchasing. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) appointed with multiple A-rated carriers. Tax discussion reflects federal law as of 2026 and is subject to change. Consult a CPA and licensed advisor before acting on any output shown.