Annuity IRR
Calculate the internal rate of return of an annuity, year by year, from an editable payment table.
Prepared by Groupe Conseil Sabin Painchaud
Prepared on September 21, 2026
Internal rate of return (IRR) — annuity
Parameters
Tip: select and copy a column of cells in Excel (annual payment), click the first cell to fill in the table below, then paste (Ctrl+V) to fill several rows at once.
| Age | Probability of reaching this age | Annual payment received ($) | Cumulative IRR (%) |
|---|---|---|---|
| 65 | 100.0 % | -94.00 % | |
| 66 | 98.9 % | -72.32 % | |
| 67 | 97.7 % | -53.44 % | |
| 68 | 96.4 % | -39.86 % | |
| 69 | 95.0 % | -30.19 % | |
| 70 | 93.4 % | -23.17 % | |
| 71 | 91.7 % | -17.93 % | |
| 72 | 89.8 % | -13.94 % | |
| 73 | 87.7 % | -10.82 % | |
| 74 | 85.5 % | -8.35 % | |
| 75 | 83.0 % | -6.36 % | |
| 76 | 80.4 % | -4.72 % | |
| 77 | 77.5 % | -3.37 % | |
| 78 | 74.4 % | -2.24 % | |
| 79 | 71.2 % | -1.29 % | |
| 80 | 67.7 % | -0.48 % | |
| 81 | 64.0 % | 0.22 % | |
| 82 | 60.0 % | 0.82 % | |
| 83 | 56.0 % | 1.35 % | |
| 84 | 51.7 % | 1.80 % | |
| 85 | 47.3 % | 2.20 % | |
| 86 | 42.9 % | 2.56 % | |
| 87 | 38.4 % | 2.87 % | |
| 88 | 33.9 % | 3.15 % | |
| 89 | 29.5 % | 3.40 % | |
| 90 | 25.2 % | 3.62 % | |
| 91 | 21.1 % | 3.82 % | |
| 92 | 17.3 % | 4.00 % | |
| 93 | 13.8 % | 4.16 % | |
| 94 | 10.7 % | 4.31 % | |
| 95 | 8.0 % | 4.44 % | |
| 96 | 5.8 % | 4.56 % | |
| 97 | 4.0 % | 4.67 % | |
| 98 | 2.6 % | 4.77 % | |
| 99 | 1.6 % | 4.86 % | |
| 100 | 0.9 % | 4.94 % |
“This calculator estimates, for informational purposes only, the internal rate of return (IRR) of an annuity based on the single premium paid at purchase and the annual payments you enter. For a given year, the IRR is the rate that equates the premium paid with the present value of payments received up to that year. No tax is taken into account: depending on the type of annuity (registered, non-registered prescribed or non-prescribed) and the holding account, part or all of each payment may be taxable. Data should be taken from an official insurer illustration or statement; values entered here may differ from the actual contract values. The probability of reaching each age is estimated from the Canadian Institute of Actuaries’ CPM2014 mortality table (Canadian pensioners), which does not distinguish smokers from non-smokers. This result does not constitute financial, actuarial or tax advice, nor a guarantee of return.”
| Age | Probability of reaching this age | Annual payment received ($) | Cumulative IRR (%) |
|---|---|---|---|
| 65 | 100.0 % | 6 000 $ | -94.00 % |
| 66 | 98.9 % | 6 000 $ | -72.32 % |
| 67 | 97.7 % | 6 000 $ | -53.44 % |
| 68 | 96.4 % | 6 000 $ | -39.86 % |
| 69 | 95.0 % | 6 000 $ | -30.19 % |
| 70 | 93.4 % | 6 000 $ | -23.17 % |
| 71 | 91.7 % | 6 000 $ | -17.93 % |
| 72 | 89.8 % | 6 000 $ | -13.94 % |
| 73 | 87.7 % | 6 000 $ | -10.82 % |
| 74 | 85.5 % | 6 000 $ | -8.35 % |
| 75 | 83.0 % | 6 000 $ | -6.36 % |
| 76 | 80.4 % | 6 000 $ | -4.72 % |
| 77 | 77.5 % | 6 000 $ | -3.37 % |
| 78 | 74.4 % | 6 000 $ | -2.24 % |
| 79 | 71.2 % | 6 000 $ | -1.29 % |
| 80 | 67.7 % | 6 000 $ | -0.48 % |
| 81 | 64.0 % | 6 000 $ | 0.22 % |
| 82 | 60.0 % | 6 000 $ | 0.82 % |
| 83 | 56.0 % | 6 000 $ | 1.35 % |
| 84 | 51.7 % | 6 000 $ | 1.80 % |
| 85 | 47.3 % | 6 000 $ | 2.20 % |
| 86 | 42.9 % | 6 000 $ | 2.56 % |
| 87 | 38.4 % | 6 000 $ | 2.87 % |
| 88 | 33.9 % | 6 000 $ | 3.15 % |
| 89 | 29.5 % | 6 000 $ | 3.40 % |
| 90 | 25.2 % | 6 000 $ | 3.62 % |
| 91 | 21.1 % | 6 000 $ | 3.82 % |
| 92 | 17.3 % | 6 000 $ | 4.00 % |
| 93 | 13.8 % | 6 000 $ | 4.16 % |
| 94 | 10.7 % | 6 000 $ | 4.31 % |
| 95 | 8.0 % | 6 000 $ | 4.44 % |
| 96 | 5.8 % | 6 000 $ | 4.56 % |
| 97 | 4.0 % | 6 000 $ | 4.67 % |
| 98 | 2.6 % | 6 000 $ | 4.77 % |
| 99 | 1.6 % | 6 000 $ | 4.86 % |
| 100 | 0.9 % | 6 000 $ | 4.94 % |
“This calculator estimates, for informational purposes only, the internal rate of return (IRR) of an annuity based on the single premium paid at purchase and the annual payments you enter. For a given year, the IRR is the rate that equates the premium paid with the present value of payments received up to that year. No tax is taken into account: depending on the type of annuity (registered, non-registered prescribed or non-prescribed) and the holding account, part or all of each payment may be taxable. Data should be taken from an official insurer illustration or statement; values entered here may differ from the actual contract values. The probability of reaching each age is estimated from the Canadian Institute of Actuaries’ CPM2014 mortality table (Canadian pensioners), which does not distinguish smokers from non-smokers. This result does not constitute financial, actuarial or tax advice, nor a guarantee of return.”
Calculation assumptions
- The projection extends to age 100, based on the age at purchase.
- The single premium is assumed paid at the start of year 1; annuity payments are assumed received at the end of each year.
- The IRR for a given year is the rate that equates the premium paid with the present value of payments received up to that same year.
- No tax, fees, or capital guarantee (guaranteed period, death benefit) is modelled beyond the payments entered by the user.
- Payments are those entered by the user or their advisor, generally taken from an official insurer illustration.
- The survival probability uses the Canadian Institute of Actuaries’ CPM2014 mortality table (Canadian pensioners), adjusted by log-linear (Gompertz) regression; it does not distinguish smokers from non-smokers.
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