Annuity Payout Calculator
Calculate the monthly payout from a fixed annuity that depletes the principal over the term. Free and accurate.
Calculator by Toolsloft ↗- Monthly payout
- $3,299.78
- Total payout
- $791,946.89
Calculate the fixed monthly payout from an annuity that fully depletes its principal over a set number of years at a given rate. It helps retirees and savers see how much steady income a lump sum can produce across the payout term.
How this is calculated
The monthly payout uses the standard amortization formula, treating the principal like a loan repaid over the term at the monthly rate, with total payout equal to the monthly amount times the number of months.
How to use
- Enter the annuity principal.
- Enter the annual interest rate and the payout term in years.
- Read the monthly payout and the total paid out over the term.
Examples
- $500,000 at 5% / 20 yr:
monthly payout $3,299.78 - Total over term:
$500,000 at 5% / 20 yr → $791,946.89
FAQ
- How is the monthly payout calculated?
- It uses the amortization formula: Payout = P·r·(1+r)^n / ((1+r)^n − 1), where P is the principal, r is the monthly rate (annual ÷ 12 ÷ 100), and n is the number of months. The principal is fully depleted by the end of the term.
- What is the total payout?
- The total amount paid out over the entire term, the monthly payout multiplied by the number of months.
- Does it work for a 0% annuity?
- Yes. At 0% the monthly payout is simply the principal divided by the number of months.