Retirement

Annuity Payout Calculator

Calculate the fixed monthly payout an annuity balance can generate over a chosen payout period.

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How it works

Formula & explanation

Annuity Payout Calculator uses the following calculation:

Payout = Balance × r / [1 − (1+r)−n]

This is a simplified model intended for planning and education. Real-world offers from lenders, institutions, or tax authorities may include additional fees, rules, or adjustments not reflected here.

FAQ

Frequently asked questions

Does a longer payout period mean smaller payments?

Yes — spreading the same balance over more months lowers each individual payment but extends how long the income lasts.

What happens if I outlive the payout period?

With a period-certain payout, payments stop at the end of the term; some lifetime annuity options guarantee payments for as long as you live, at a different pricing structure.

Can payout rates change over time?

This model assumes a fixed rate for simplicity; real annuity contracts may offer fixed, variable, or indexed payout structures.

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