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Annuity Payout Calculator

Estimate the income an accumulated annuity can pay for a fixed number of years, or how long a chosen withdrawal will last, with totals and a year-by-year balance schedule.

Choose how many years the annuity should last, and see each payout.

ExampleSample values — edit any field to see your result.

$

Accumulated value at the start of the payout (annuitization) phase.

%

Annual growth credited on the remaining balance. Converted to an equivalent rate per payout so a full year still earns this rate.

years

How often each withdrawal is taken. More frequent payouts slightly reduce each check because money leaves the account sooner.

Results update as you type.

Payout

$5,511.20

Estimated result

You can withdraw $5,511.20 monthly.

Number of payments
120
Total of payments
$661,344.16
Total interest/return
$161,344.16

Principal vs return

Starting principal 76%, Interest/return 24%
  • Starting principal76%
  • Interest/return24%

Annuity balances

YearBeginning balanceInterest/returnEnding balance
Year 1$500,000.00$28,200.44$462,066.02
Year 2$462,066.02$25,924.40$421,856.00
Year 3$421,856.00$23,511.80$379,233.38
Year 4$379,233.38$20,954.44$334,053.41
Year 5$334,053.41$18,243.64$286,162.63
Year 6$286,162.63$15,370.19$235,398.41
Year 7$235,398.41$12,324.34$181,588.34
Year 8$181,588.34$9,095.74$124,549.66
Year 9$124,549.66$5,673.42$64,088.66
Year 10$64,088.66$2,045.76$0.00
Payout$5,511.20

See what income an accumulated annuity can pay. Choose a fixed number of years and get each withdrawal, or enter the withdrawal you need and see how long the balance lasts. You get payment totals, an interest split, and a year-by-year schedule.

Formula

The annual return r is converted to an equivalent rate per payout so every frequency is consistent, while a full year still credits exactly r:

i = (1 + r)^(1 / ppy) − 1

Fix length is the ordinary-annuity payment that empties the account after n = years × ppy withdrawals (the same formula as a loan payment):

PMT = PV × i / (1 − (1 + i)^(−n))

At 0% that is simply PV / n. Fix payment inverts the same identity:

n = −ln(1 − PV × i / PMT) / ln(1 + i)

Duration is n / ppy years. If PMT is no larger than the first period's interest, n is infinite — the account lasts forever.

More frequent payouts take money out sooner, so each check is a little smaller, but year-end balances match across frequencies because (1 + i)^ppy = 1 + r.

Default $500,000 · 6% · 10 years

FrequencyPayoutPaymentsTotal paidInterest/return
Monthly$5,511.20120$661,344.16$161,344.16
Quarterly$16,614.2140$664,568.51$164,568.51
Annually$67,933.9810$679,339.79$179,339.79

A $5,000 monthly withdrawal from the same $500,000 at 6% lasts 11.45 years (138 payments totaling $686,817.82).

Examples

Fix length, the default plan

$500,000 starting principal at 6%, paid monthly for 10 years, supports $5,511.20 each month. Year 1 begins at $500,000, credits $28,200.44, and ends at $462,066.02. One hundred twenty payments total $661,344.16, of which $161,344.16 is return.

Same nest egg, $5,000 a month

Keeping the default principal and rate but taking $5,000 every month lasts 11.45 years. The last (partial) year begins at $26,407.39 and ends at $0. Total paid is $686,817.82.

A withdrawal that never depletes the account

$1,000 a month on the default $500,000 at 6% is below the first month's interest, so the balance never falls. The result is forever.

Frequently asked questions

What does this annuity payout calculator estimate?
The payout (distribution) phase — how much income an already-accumulated balance can support. Fix Length solves the withdrawal that empties the account in a set number of years. Fix Payment takes a chosen withdrawal and reports how long the balance lasts. It is not an accumulation calculator; use the Annuity Calculator for the deferral phase.
How is the interest rate applied between payouts?
The annual rate r is converted to an equivalent rate per payout, i = (1 + r)^(1/ppy) − 1, so a full year still credits r while withdrawals can be monthly, quarterly, or any of the other frequencies. With the default $500,000 at 6% for 10 years, monthly payouts are $5,511.20.
Why can a small withdrawal last forever?
If each check is no larger than the interest that accrues in that period, the balance never falls. On the default $500,000 at 6% monthly, the first month earns about $2,434, so a $1,000 withdrawal lasts forever. Raise the payout above that hurdle and the account will eventually reach $0.
What payout options does this skip?
Only fixed length (period certain) and fixed payment are calculated. Life only, joint-and-survivor, and life-with-period-certain need a life expectancy and an insurance-company quote. A lump-sum cash-out is just the starting principal, taken at once.
Are annuity payouts guaranteed?
Only if the contract says so. This tool assumes a single constant return and withdrawals at the end of each period. Actual payments depend on the product (fixed, indexed, or variable), fees, and the payout option you elect when you annuitize — treat the result as a planning estimate.

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