Calculators
Annuity Payout Calculator
Calculate the regular payout a lump sum can provide for a fixed number of years at a given interest rate.
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The tool
Enter your numbers below. Results update as you type, and nothing leaves your browser.
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What people use it for
- Turning savings into retirement income
- Comparing annuity quotes
- Planning structured settlement payments
- Finance coursework
About this tool
What the Annuity Payout Calculator does
A fixed-period annuity turns a lump sum into equal payments for a set number of years. Each payment is part interest and part return of capital, so the account reaches zero at the end. This calculator works out the payment for monthly, quarterly or annual payouts.
Formula
- Payment = principal × r ÷ (1 − (1 + r)^−n), r = rate per period, n = number of payments
- Payments at the start of each period = that payment ÷ (1 + r)
Worked example
Using the starting values in the calculator above:
| Input | Value |
|---|---|
| Lump sum | $250,000 |
| Annual interest rate | 5% |
| Payout period | 20 years |
| Payment frequency | Monthly |
| Payments made | At the end of each period |
| Result | Value |
|---|---|
| Payment each period | $1,649.89 |
| Income per year | $19,799 |
| Total paid out | $395,973 |
| Interest included | $145,973 |
How to read the result
A fixed-period annuity stops at the end of the term. Lifetime annuities from insurers pay for life and price in life expectancy, so their rates differ.
Inflation erodes a fixed payment. Consider an escalating annuity or a portion of savings invested for growth.
For education only, not investment advice. Past returns do not guarantee future results.
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Questions
Questions about this tool
The things clients actually want to know — costs, timelines, ownership and what happens after launch.
With the present value of annuity formula, solving for the payment that uses up the lump sum over the chosen number of periods.
An annuity whose payments are made at the start of each period rather than the end.
No. It models a fixed period; lifetime annuities depend on age and insurer pricing.
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