Annuity Payout Calculator

Enter your starting principal, annual interest rate, payout period (years), and payment frequency to find out exactly how much your annuity payout will be. You can also enter a desired payout amount to see how long your annuity will last. Results include your periodic payment amount, total payments, total interest earned, and a year-by-year balance schedule.

The lump-sum amount you are investing in the annuity.

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The expected annual return or interest rate on the annuity.

years

Number of years over which the annuity will make payments. Leave blank if you want to calculate based on a fixed payout amount.

Enter a fixed periodic payout amount to calculate how long the annuity will last instead.

How often payments are distributed.

Results

Periodic Payout Amount

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Total Number of Payments

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Total Amount Paid Out

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Total Interest / Return

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Payout Duration (Years)

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Principal vs. Total Interest Earned

Results Table

Frequently Asked Questions

What is an annuity payout?

An annuity payout is the periodic income payment distributed from an annuity contract to the annuitant. After an initial lump sum (or series of contributions) is invested, the annuity pays back principal plus earned interest over a set period or for the lifetime of the holder.

What factors affect annuity payout calculations?

The main factors are your starting principal, the annual interest rate, the payout period, and your payment frequency. Your age and life expectancy also matter for lifetime annuities, since older annuitants typically receive higher monthly payments due to a shorter expected payment period.

What is the difference between immediate and deferred income annuities?

An immediate annuity begins making payments almost right away after a lump-sum purchase, typically within one month to one year. A deferred annuity has an accumulation phase where your money grows before payouts begin at a future date, potentially resulting in higher periodic payments.

How does payment frequency affect my payout amount?

Payment frequency determines how often interest compounds and payments are distributed. More frequent payments (e.g., monthly vs. annually) slightly reduce each individual payment amount but provide more regular cash flow. The total lifetime payout remains similar across frequencies for the same principal and rate.

What annuity payout options are available?

Common payout options include life-only (payments for your lifetime), life with period certain (guaranteed payments for a set number of years even if you pass away early), joint and survivor (covering you and a spouse), and fixed-period (payments for a specific number of years regardless of lifespan). Adding joint or period certain coverage typically reduces each payment slightly.

How is the periodic payout amount calculated?

The payout amount uses the present value of an annuity formula: PMT = PV × [r / (1 − (1 + r)^(−n))], where PV is your starting balance, r is the periodic interest rate (annual rate divided by payment frequency), and n is the total number of payments.

What is the difference between a qualified and non-qualified annuity?

A qualified annuity is funded with pre-tax dollars (e.g., through an IRA or 401(k)), meaning all payouts are taxed as ordinary income. A non-qualified annuity is funded with after-tax money, so only the earnings portion of each payment is taxable, not the original principal.

Can I use this calculator to find out how long my annuity will last?

Yes. Instead of entering a payout period, enter your desired periodic payment amount in the 'Desired Payout Amount' field. The calculator will determine how many years your annuity will last before the balance reaches zero, based on your principal and interest rate.

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