Annuity Payout Calculator
See how much steady income a lump sum can provide. Enter a starting balance, an expected return, and a payout length to find the payment that draws the balance down to zero.
Annuity details
How to use this calculator
1. Enter the starting balance
This is the lump sum you're starting with — a retirement pot, a settlement, or any amount you want to turn into regular income.
2. Set the expected annual return
Enter the yearly rate the remaining balance is assumed to earn while it's being paid out. A conservative figure leaves more margin for safety.
3. Choose the length and frequency
Give the number of years the income should last, then toggle between monthly and annual payouts. The rate is divided by the number of payments per year.
4. Read the payout and totals
The big number is each payment. The cards show the total drawn over the whole period and how much of that came from interest earned along the way.
About annuity payouts
How is the payout amount calculated?
The starting balance is treated as the present value of a stream of equal payments. With a periodic rate i and n periods, each payout is balance × i / (1 − (1 + i)−n). The remaining balance keeps earning interest between payments, so you can withdraw more than a simple balance-divided-by-periods amount.
Does the balance run out at the end?
Yes. This is a fixed-period payout: the payment is sized so the balance, plus the interest it earns along the way, is fully drawn down to zero by the final payment. After the last payout there is nothing left in the account.
What this model doesn't include
The calculation assumes a steady return and ignores taxes, fees, and inflation. Real annuity products and investment accounts vary, so treat the result as a planning estimate rather than a guarantee.