Find how much an annuity can pay, or how long a balance lasts at a given payment.
Please do not make financial decisions based on these results.
What is the Annuity Payout Calculator?
An annuity payout calculator shows how much a lump sum can pay out over a set number of years, or how long it lasts at a given payment amount.
Turning savings into income
Near retirement, the questions change from saving to spending. The annuity payout calculator shows what a lump sum could pay, the Social Security calculator compares claiming ages, and the RMD calculator shows required withdrawals.
How to use the Annuity Payout Calculator
- Enter your numbers. The inputs are Annuity balance / lump sum ($), Interest rate during payout (% per year), Payout length: years. Use today’s balances and your real contribution amounts, then test a more cautious return. Fields marked optional can stay at zero.
- Choose your options. Payment frequency, Payments at the… change how the result is worked out, and the form updates to match your choice.
- Read the result. The highlighted box gives the Payment per period, and the cards below show Number of payments, Total paid out, Interest earned. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Annuity Payout Calculator using the default values shown in the calculator above:
Inputs
| Mode | How much can I withdraw? |
|---|---|
| Annuity balance / lump sum ($) | 500,000 |
| Interest rate during payout (% per year) | 4.5 |
| Payment frequency | Monthly |
| Payments at the… | End of each period |
| Payout length: years | 25 |
Results
| Payment per period | $2,779.16 |
|---|---|
| Number of payments | 300 |
| Total paid out | $833,748.72 |
| Interest earned | $333,748.72 |
| Monthly equivalent | $2,779.16 |
| Last payment | $2,779.16 |
With these inputs the calculator returns Payment per period: $2,779.16. Change any value in the calculator to see how the result moves.
What the results tell you
The results panel of the Annuity Payout Calculator reports Payment per period, number of payments, total paid out, interest earned, monthly equivalent and last payment. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Tips for better results
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. Retirement results depend on returns, inflation and contribution limits that change over time. They are projections, not promises. It is for information, not financial, tax or legal advice.
Frequently asked questions
Can payments rise over time?
Yes. Add a yearly increase for cost-of-living adjustments.
How is the payout calculated?
The tool finds the level payment whose present value equals your balance at the interest rate you enter.
How much should I save for retirement?
Many planners suggest saving 10% to 15% of income, including employer match, starting early. The retirement calculator shows the monthly amount you need for your own goal.
When should I claim Social Security?
Claiming at 62 reduces your benefit permanently, while waiting until 70 increases it. The best age depends on your health, other income and spouse. The Social Security Calculator compares the options.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
Related retirement calculators
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- Deferred Annuity Calculator
- Variable Annuity Calculator
- Growing Annuity Calculator
- Future Value of Annuity Calculator
- Present Value of Annuity Calculator
- Retirement Calculator
- 401(k) Calculator
- Social Security Calculator
- 403b Calculator
- Retirement Withdrawal Calculator