Annuity Payout Calculator
Plan the payout phase of an annuity. Choose a fixed payout length to see the periodic payment your principal supports, or a fixed payment amount to see how long the money lasts. Includes the year-by-year balance rundown of principal and returns.
TheCalculators — Annuity Payout Calculator
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You can withdraw $5,511.20 monthly
$5,511.20
for 10 years (120 payments) from $500,000
- Starting Principal
- $500,000.00
- Total of 120 Payments
- $661,344.16
- Total Interest / Return
- $161,344.16
- Return Share of Payments
- 24.4%
Payment composition
- Principal Returned$500,000
- Interest / Return$161,344
Annuity balances
Fixed-length ("period certain") payments continue to heirs if you die early; "life only" annuitization pays until death with no remainder. This tool models the fixed math, not insurer mortality credits.
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Formula
Payment = P × rₚ / (1 − (1+rₚ)^−N), rₚ = (1+i)^(1/k) − 1
- • P = starting principal at annuitization
- • i = annual return, k = payments per year, N = total number of payments
- • Fixed-payment mode solves N = −ln(1 − P·rₚ/PMT) / ln(1+rₚ)
Pro tips
- • The 4% rule is a common starting withdrawal rate for retirement portfolios.
- • Longer payout periods mean smaller payments but more total interest earned.
- • Once annuitized, the payout choice is irrevocable — model several scenarios first.
FAQ
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