About the Annuity Payout Calculator
Find the regular payout from an annuity bought with a lump sum over a chosen number of years. This tool is free, works in your browser and needs no sign-up.
How to use the Annuity Payout Calculator
Enter the lump sum, the interest rate, the payout years and whether payments come at the start or end of each month.
Formula used
Payout = P × r × (1 + r)^n ÷ ((1 + r)^n − 1). For payments at the start of the month, divide by (1 + r).
Example
With Lump sum used to buy the annuity 250000, Interest rate (% per year) 5, Payout period (years) 20, the calculator shows: Monthly payout = 1,649.89; Total payments = 395,973.44; Interest earned = 145,973.44.
Frequently asked questions
What is an annuity?
An annuity is a series of regular payments. You can buy one with a lump sum and receive income for a fixed time or for life.
Is the Annuity Payout Calculator free to use?
Yes. It is completely free and you can use it as many times as you like.
How accurate is the Annuity Payout Calculator?
The calculator uses standard formulas, so the maths is exact. Real life results can differ because of fees, taxes, rounding or personal factors, so treat the answer as an estimate.
Do you store the numbers I enter?
No. All calculations run in your browser. The values you type are not sent to our server.
Disclaimer: results are estimates for information only. They are not financial, medical or professional advice.