Estimate the age when cumulative after-tax annuity payments equal the upfront premium. This nominal cash-recovery view adjusts each payment for its taxable share and your entered tax rate, then converts the required number of payments into a break-even age. It is a useful checkpoint for longevity comparisons, but it does not value insurance guarantees, time value of money, survivor benefits, liquidity, or payments received by beneficiaries.
After-tax payment = monthly payment × [1 − (taxable share × tax rate)]
Break-even months = premium ÷ after-tax monthly payment
Use the main result as a scenario estimate and compare it with alternative assumptions. Small changes in tax, return, inflation, or payment terms can compound into meaningful differences.
This is an educational estimate, not tax, investment, insurance, or legal advice. Actual taxes and contract benefits depend on jurisdiction and plan terms.
A $300,000 premium producing $2,200 monthly, with 75% taxable at 24%, pays about $1,804 after tax. Nominal break-even occurs after 167 months, or near age 78.9 when payments start at 65.
No. This is a nominal cash-recovery calculation and does not add an opportunity cost.
A larger taxable share lowers the estimated after-tax payment and pushes break-even later.
Yes. Months are rounded up because a full payment is needed to recover the remaining premium.
Not necessarily. Guarantees, survivor payments, and insurance value may still matter.
Use the forecast calculator for growing payments; this break-even tool assumes a level payment.
| Measure | Included? |
|---|---|
| Income tax estimate | Yes |
| Time value of money | No |
| Death or survivor benefit | No |